How to Set Up a Partnership

Video Transcript

"You and a business associate have decided to go into business together and you've decided that you want to do it as a partnership. Hello, I'm Robert Todd, and I'm here to answer the question, how to set up a partnership? Well one of the first things you want to do in a partnership is of course comply with the laws of the state in which you are doing business. So you want to check the statutes and what specific requirements are required by your particular state. Next you want to consider what licenses and permits you may need, and one of the best ways to do that is to contact the local office of the Small Business Administration in your area to ask them what license and permits you may need. The next step is to obtain a federal tax identification number for your business from the Internal Revenue Service. Next, in some states you may require an identification number from your particular state's Department of Revenue and you want to obtain that number from that agency. Then there is the issue of having a written agreement outlining the specific rights and liabilities of each partner. If this is something that you haven't done before or been involved with, you may want to consider hiring a lawyer that specializes in partnership agreements to assist you. I'm Robert Todd and thank you for watching."