How to Form a Legal Partnership

Video Transcript

"You and a business associate have decided to go into business together and you've decided that you want to go into business as a legal partnership. Hello, I'm Robert Todd, and I'm here to answer the question, how do we create a legal partnership? Well first of all you want to be sure and obtain the correct licenses and permits that your business is going to need, and perhaps one of the best ways to do that is to contact the local office of the small business administration. Secondly, you want to be sure that you comply with your states laws regarding doing business under a fictitious name, third, you want to be sure and get an employer identification number, which you can get from the Internal Revenue Service, and then you want to be sure and get an employer identification number from your states department of revenue, if that is required. And then perhaps, last but not least, is to draft a written agreement that outlines your particular partnership agreement, and if this is something you've never done before, you may want to consider hiring a lawyer that does this type of work to make sure that the agreement reflect what you and your partners have agreed to do. I'm Robert Todd, and thank you for watching."