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There is a possibility of creating a partnership with my fiance on his existing sole proprietorship business but my question is

Asked over 2 years ago - Marina Del Rey, CA

If we are not able to immediately add my name to the lease but are able to create an immediate partnership does this mean I am still entitled to all monies being made by the business in this agreement. And another question what is the risk I take on by not being on the lease are their any advantages or disadvantages to this.
also if he has existing debts and lawsuits pending is there any suggested way to protect myself from those moving forward as a partnership

thanks!

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Attorney answers (1)

Richard F Hamlin

Reputation Level 11

Answered over 2 years ago. Business Attorney in Los Angeles, CA.

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-Changing from a sole proprietorship to a partnership may violate your fiance's existing lease, which probably limits your fiance's right to assign an interest in the leasehold. You can avoid that issue by getting the landlord's consent to add you to the lease as a partner.
-Your rights and obligations as a partner will depend on the agreement you negotiate with your fiance. As always, it is best to get the agreement in writing and signed by everyone who is affected by it. You need to talk about capital contributions, division of profits and losses and treatment of existing debts.

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