Legal Question in Business Law in California
I would like to become a partner for specific activities of a consulting firm and if I get the partners sign the non-notarized document related to profit sharing then is it a legal document ?. We don't mind getting a notarized document but its little tough as we three are in different states of USA
2 Answers from Attorneys
Laypeople often use the term "legal document", but it doesn't really mean anything. Signatures on some documents have to be notarized in order to be legally binding, but most don't. I don't have enough information to say whether you need to have this signature notarized.
Signatures on partnership agreements don't need to be notarized in order to become official and binding on the parties, and it is rare that they are. Notarization is required on most (but not all) documents that are going to be recorded with the County Recorder, such as deeds and mortgages. Partnership agreements are considered private and confidential, and would almost never be recorded, for all to see. (Also, I'm not aware that "notarization" has any effect upon whether a document is "legally binding" on the parties thereto.)
Any agreement whereby someone becomes a partner in a business should be complete and very carefully thought through to avoid serious disputes and expensive judgments later on. It is very careless to focus only on "profit sharing" when becoming a partner. Partners in general partnerships also have "expense sharing" and "loss sharing" to consider.
I strongly recommend getting complete, competent legal advice before getting involved in any partnership.......partnerships can be formed, by the way, by oral agreement, or by acting as though you are a partner with no agreement at all.
Related Questions & Answers
-
I have filed an action in the limited jurisdiction of the superior court. The... Asked 1/29/13, 5:31 pm in United States California Business Law
-
A person by the name of Steven Georgiou,... Asked 1/29/13, 4:34 pm in United States California Business Law