Forming a Partnership

Video Transcript

"You and some other individuals have decided to go into business together and after knocking it around a little bit, you've decided you want to form a partnership. Hello, I'm Robert Todd and I'm here to answer the question what's involved in forming a partnership? Well one of the first things that you want to consider doing is to determine what your state and what your local governmental agencies require in the nature of licenses and permits and one of the best sources of information for that is the local office of the small business administration. Next if you're going to be doing business under a fictitious name you want to make sure that you comply with your state's requirements on registering a fictitious name. Then you want to consider getting an employer identification number from the Internal Revenue Service. And then you want to consider getting an identification number from your state's department of revenue. And finally, perhaps the most important aspect of a partnership is putting together a written agreement that outlines who the partners are, what their respective shares of compensation and liability are going to be and in the event of a dissolution, who's going to get what. If this is something you haven't done before, you may want to consider hiring an attorney that does this as a specialty to assist you. I'm Robert Todd and thank you for watching."