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Can partners hire employees in a general partnership?

View Michael S.
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Employer

General Partnership

California

I am a small business owner considering setting up a general partnership with another business owner. We are both looking to maximize our resources and capabilities by hiring employees, but I am unsure of the legal implications. Can partners in a general partnership hire employees, and what are the legal requirements for doing so?

Michael S.

Answered May 12, 2023

Partners in a general partnership have apparent authority to take any action on behalf of the partnership, including hiring employees. This is true even if the partners have agreed between themselves that one a partner does not have the authority to hire employees. A partnership that limits the authority of one partner would give rise to a claim by one partner against the other, but third parties can rely on the apparent authority of a partner to make hiring decisions.

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