Types of business partnerships

In the business world there are a series of mechanisms that every entity must carry out, therefore, the individual must leave It is very clear to the lawyer, so that he can determine the social system, under which he intends to develop his commercial activity or business.

When the individual does not carry out the formalities of place (constitution), to give validity before the company, immediately its commercial entity takes the name of a de facto society, which are those companies that do not is it so legally constituted.

It is not a good idea to leave everything in the hands of the lawyer, it is good that the individual who wants to give legality to his company, knows the steps and each of the characteristics and consequences that will be followed, in this sense, today we want to list the types of business companies that exist, so that you have more knowledge of each of they.

Types of business partnerships

Society in Collective Name: It is a company that is created by at least two partners, under a company name and that all the members that make it up have the quality of merchants and can respond without any problems in a subsidiary, joint and unlimited way of any obligation Social.

Some important characteristics of the Society in Collective Name are:

• Business name: This company must be made up of the name of one or more associates followed by the words "and company" or its abbreviation.

• Capital: This will be established in the bylaws.
• Management: all the members or partners will be managers of the same, unless there is some modification in the statutes.

Simple Limited Partnership: this type of society are those that are created under a company name and are made up of one or more partners comandados who have the power to respond in a subsidiary, unlimited and joint manner to any social obligation that exist.

Intrinsic characteristics of the Limited Partnership:

• Business name: It will be made up of the names of one or more partners, followed by the words "and company" or other equivalents
• Capital: it will be established in the partnership agreement. The partners will make their contributions in nature or in cash.
• Assignment of Social Shares: These parts will only be transferred with the approval of all the members.
• Management: a manager is appointed by a majority of all the partners, except for any modification or clause to the contrary of the bylaws.

Limited Liability Company: are those that are made up of two or more people, through contributions from all members or partners, with the exception that they do not have the responsibility to respond to the debts social.

Some characteristics of Limited Liability Companies:

• Number of Partners: A minimum of two partners and a maximum of fifty.
• Social denomination: You can use a fantasy name or a business name that must be preceded or followed by the initials "S.R.L."
• Capital: In this section, the capital stock will be divided into social quotas, but these will not be represented by negotiable securities.
• Company Administration: The association will be managed by one or more managers.
• Assemblies of Partners: Decisions will be made in assembly.

Anonymous society: It is one that is composed exclusively of partners, who are obliged to pay their shares

Limited Partnership by Shares: They are those that are made up of several commanded partners, with the disposition of merchants and they must be liable indefinitely and jointly and severally for social debts.

Cooperative Society: It is one that is made up of partners who only contribute their work.

Social Solidarity Society: is one that is made up of a collective patrimony, where the partners are natural persons of Mexican nationality.