Obtain all required local, state and federal licenses and permits. Contact the Small Business Administration (SBA) in your area to find out which ones you will need.
Step2
Register the name of the company in the county where the partnership does business, and obtain a Fictitious Business Name Certificate.
Step3
Get an Employer Identification Number from the IRS using Form SS-4.
Step4
In addition, get an ID number from the state Department of Revenue or the appropriate state office in your area. (Check with the SBA to find that office.)
Step5
Draft a written agreement between the partners determining a financial plan, management responsibilities, and the rights and obligations of individual partners. A written agreement is not required but can save a lot of headaches should a dispute arise. It's advisable to engage the services of an attorney in drafting this document.
Step6
Get help preparing tax returns, filing estimated taxes and preparing business statements until you understand them fully.
Tips & Warnings
Partners report profits and losses on their individual income tax returns and must pay self-employment tax.
General partners assume unlimited legal liability with no protection for personal assets if the business goes bankrupt.
Responsibility for the business actions of each individual partner is shared by all partners.