| Establishing a business partnership is one of the | | | | each partner will have.o Allocations of profits, |
| cheapest and easiest ways of building a business | | | | gains and losso Partner's authorityo Partnership |
| structure. But before entering into a partnership, | | | | decision making |
| you must first remember some important | | | | Starting A Partnership in Business |
| points:o Personal liability - Except in limited | | | | Before starting a partnership, hereis a checklist or |
| partnerships, all owners of partnerships are liable | | | | steps to take . Startup requirements in business |
| for all business debts and obligations, including | | | | may vary, depending on the specific type of |
| judgments.o Joint authority - Any individual partner | | | | business you are planning to put up, and where |
| can bind the whole business to a contract, | | | | your business is located. |
| meaning any one of the partners can commit the | | | | 1. Decide on a business. |
| entity to a deal.o Joint liability - Each individual | | | | 2. Choose a business name and have it registered. |
| partly may be held accountable for business | | | | 3. Create and sign a business agreement with the |
| debt.o Partnership taxes - Payment of taxes in a | | | | help of a lawyer |
| partnership is done through the "pass-through | | | | 4. Register your partnership by filing a certificate |
| entity" principle in which the owners are required | | | | or registration of partnership with the Secretary |
| to submit an IRS form to declare their separate | | | | of State. This step is required for limited liability |
| income. | | | | partnership (LLPs) and limited partnership |
| To function effectively, a business partnership | | | | 5. Obtain forms of business licenses and permits |
| must be governed by a set of rules called the | | | | from the federal offices, state government and |
| partnership agreement. With the help of a | | | | the local government |
| business lawyer, partners can draft an agreement | | | | Forming a partnership can have a long-term |
| together. The partnership agreement would also | | | | benefit to your new business in the long run, but |
| be useful in settling disputes that may arise in the | | | | the process -- most notably drafting a |
| course of conducting a business. | | | | comprehensive partnership agreement -- can be |
| Here are the key points that must be covered by | | | | complicated. To ensure that your new partnership |
| the partnership agreement:o Name of | | | | would cover all legal bases and has the best |
| partnershipo Contributions to the partnership - It | | | | chance for success before opening, you may wish |
| is important to note the contributions made by | | | | to consult an experienced business attorney. |
| each partner and what percentage of ownership | | | | |