How to Form a Partnership

Series Summary

Starting a business requires the utmost organization and planning. Beyond conceptualizing a business plan and getting the ball rolling, there are employees to compensate, books to keep and laws to follow. Whether it be a sole proprietorship or large corporation, it is the business owners' responsibility to monitor every detail that takes place in their business. Many businesses are built with one goal in mind: make profit. In this free video series, let a lawyer explain everything there is to know regarding business law. First, learn about partnerships, forming an LLC or limited liability company, sole proprietorship and operating agreements. Next, he talks about forming a board of directors, filing for a patent, registering a company name and starting a corporation. Finally, he discusses corporate bylaws, dividends, anti-fraud suits and insider trading.

Video Transcript

"You and a friend have decided to go into business together and you think you want to form a partnership. Hello I'm Robert Todd and I'm here to answer the question how do I form a partnership. Well one of the first things you might consider is contacting the small business administration office that is close to the area that you are intending to do business. And find out from them what licenses and registrations you need to make. The next step is to obtain a federal tax id number, from the internal revenue service and then you may consider obtaining the appropriate identification number from your particular states department of revenue. Then you want to consider what's going to be in the partnership agreement. We strongly recommend that you have a partnership agreement that outlines who's going to do what, who's going to be compensated for their efforts in what ratio and who would receive the assets and who would receive the liabilities in the event that partnership dissolved. You may wish to consult an attorney to draft a partnership agreement. I'm Robert Todd and thank you for watching."