Starting a business partnership can be exciting—whether it’s with a close friend, a colleague, or someone you trust in your industry. But while it’s tempting to dive right into business, taking the right legal steps early on can save you from major headaches down the road.
Here’s what you need to know if you’re starting a business partnership in New York—and why forming an LLC and having an attorney draft your documents might be the smartest first move.
Do I Need to Form an LLC for a Partnership?
Technically, no. New York allows you to operate as a general partnership without filing anything with the state. But here’s the catch: in a general partnership, both partners are personally liable for business debts and lawsuits.
That means if something goes wrong—whether it’s a contract dispute or an unexpected lawsuit—your personal assets (like your car, bank account, or home) could be on the line.
Forming a Limited Liability Company (LLC) adds a layer of protection. With an LLC, the business becomes its own legal entity, shielding your personal assets from most business liabilities.
The Operating Agreement: Your Business Partnership’s Rulebook
In New York, LLCs are required by law to adopt a written Operating Agreement within 90 days of formation. This is the document that outlines:
- Each partner’s responsibilities
- How profits and losses are divided
- What happens if one partner wants to leave
- How major decisions are made
- What to do if there’s a dispute
Don’t rely on a one-size-fits-all template. Every business is different, and a customized agreement can prevent confusion—and lawsuits—later on.
Why You Should Hire an Attorney
Online LLC formation services may help file the paperwork, but they don’t get to know your business. An attorney does.
Having a lawyer draft or review your operating agreement ensures:
- Your rights are protected
- Your agreement complies with NY law
- You’re not missing key clauses that matter later (like buyouts, deadlock provisions, or capital contributions)
This is especially important if you’re going into business with family or friends—because clear legal terms help preserve the relationship when business gets tough.
Ready to Start Your Partnership the Right Way?
If you’re forming a business partnership in New York, we can help you create a solid legal foundation from the start.
Landry Legal, PLLC offers flat-fee LLC formation and customized operating agreements—so you can focus on building your business without worrying about what could go wrong.
Call us at 888-914-0011 or email us at contact@landrypllc.com to schedule a consultation today.
