§ 16106 Partnership Governing Law Rules

• •The rules for how partners work together usually depend on where their main office is.
• •If the business is registered as a special kind in California, California's rules apply no matter where the main office is.
• •This law helps decide who is responsible if the business owes money.

Two friends start a small business together in California, but their main office is in Nevada.

Normally, Nevada's rules would decide how the friends run their business and who pays if the business has debts. But if they register their business as a special kind in California, then California's rules apply instead.