Editor's Note: This is a portion of a full article on how to form and license different entities. Members may access the full article here. To read a more in-depth discussion on the differences between the entities, click here.
Because a partnership exists on its own based on the parties’ intent and behavior, no filing is required with the Secretary of State to form a partnership (similarly to a sole proprietorship), whether or not the partners have a written agreement. Nonetheless, in contrast to a sole proprietorship, a partnership is considered a legal entity that is distinct from its owners. Therefore, a partnership may conduct business, own property or sue in its own name. For example, Susie Smith, D.C. & John Jones, D.C. may open bank accounts and sign a lease under that partnership name. Either one of the partners is authorized to enter into business agreements on behalf of the partnership.
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