Yes. The partnership (whether it is a limited liability partnership, limited partnership, or other type of partnership) must issue at least one unit or percentage of ownership to a partner in order to be properly formed. Otherwise there were no owners (partners) of the business.
Partnership units are issued through a resolution prepared and signed by the incorporator, founder, or partners. Assuming that the partnership has a sufficient open pool of authorized units from which the new units to be issued are issued from, the new units are been issued to the new partner, and the process is documented often through a partnership agreement, or similar type of agreement restricting what can be done with the units by the partner. These type of agreements often used to protect the partnership from having its shares transferred, sold, or otherwise given away to unauthorized members.
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Yes.
[title size=2]Related Formation FAQs[/title]
- Coronavirus Policy for California Employers
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- Who Makes End of Life Decisions When an Accidental Tragedy Occurs?
- Axis Legal Counsel Hired in Trust Litigation Fraud and Breach of Fiduciary Duty Case involving Multiple Family Members
- California Will Requirements and Top Wills FAQs
- California 2020 Rest Break Laws | Los Angeles 2020 Rest Break Laws
- Could Your LLC Save on Taxes by Converting to an S Corp?
- Can a Company Have Two Presidents?
- Can a Business Ban a Customer?
- Employer’s Guide to Responding to an Employee’s Unemployment Claim
[title size=2]Other FAQs[/title]
- Formation FAQs
- Stock Issuance FAQs
- Investment & Fundraising FAQs
- Intellectual Property FAQs
- Corporate Governance FAQs
- Employees & Labor FAQs
- Licensing & Permits FAQs
- Tax FAQs
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