Are you interested in starting a partnership? If so, you’ve probably looked into the many other business structures, such as a limited liability company and corporation.
It doesn’t matter if you’ll have one partner or many, there are a variety of steps that you need to take as soon as possible.
Although this sounds simple enough upfront, there’s something to remember: The agreement that you put in place will touch on the management of the business, the financial stake of each person, and of course, what will happen in the event that the company is sold or closes its doors in the future.
Here are some of the most important steps to take:
— Sit down and discuss the arrangement with your partner or partners. During this time, you can discuss any and all details pertaining to the company.
— Choose a business name.
— Register your partnership name.
— Create a partnership agreement. This is an important document. It outlines the details that you’ve decided upon with your partner or partners. For example, it lists out the duties and responsibilities of each partner, the financial arrangement and how profit and losses are distributed.
As excited as you may be about getting started, don’t jump the gun and overlook the importance of taking these key steps.
If you have any questions about the partnership, take a step back and answer them before you do anything else. When you take care of all the legal details upfront, you don’t have to worry about this in the weeks, months and years to follow.
Source: FindLaw, “Checklist: Starting a Partnership,” accessed Jan. 02, 2017