{"id":2409,"date":"2019-03-16T22:27:51","date_gmt":"2019-03-17T02:27:51","guid":{"rendered":"http:\/\/www.atyourbusiness.com\/blog\/?p=2409"},"modified":"2019-03-16T22:27:53","modified_gmt":"2019-03-17T02:27:53","slug":"business-logistics-how-to-form-a-partnership","status":"publish","type":"post","link":"https:\/\/www.atyourbusiness.com\/blog\/business-logistics-how-to-form-a-partnership\/","title":{"rendered":"Business Logistics: How to Form a Partnership"},"content":{"rendered":"\n

<\/h2>\n\n\n\n

Looking to be the next Steve Jobs and Steve Wozniak? You\u2019ll want to create a partnership.<\/p>\n\n\n\n

When setting up a business as a professional, we\u2019re generally able to choose between four different types of partnerships<\/a>.<\/p>\n\n\n\n

However, there\u2019s more to the process than simply picking the type of partnership you want to create.<\/p>\n\n\n\n

Understanding how to form a partnership is the first step in doing it correctly. Lucky for you, we\u2019ve developed a comprehensive guide with everything you need to know.<\/p>\n\n\n\n\n\n

What Exactly is a Partnership?<\/h2>\n\n\n\n

In simple terms: partnerships are businesses that have more or one owner.<\/em><\/p>\n\n\n\n

According to the IRS, partnerships are the default kind of limited liability company (LLC).<\/p>\n\n\n\n

This means that a partnership is formed when two or more people decide to formally do business together. However, they\u2019ll still need to sign an .<\/p>\n\n\n\n

The Small Business Administration refers to partnerships as slightly less formal than corporations. This makes them a great option for small business owners who want to test the waters before expanding.<\/p>\n\n\n\n

Once the business has grown to a certain point, experts recommend taking advantage of the power of a partnership<\/a>.<\/p>\n\n\n\n

The Logistics of Partnership Formation<\/h2>\n\n\n\n

Aside from the legal part of making your business a partnership<\/a>, there are financial aspects to consider as well.<\/p>\n\n\n\n

Tax policy is actually a huge part of how partnerships are formed and how they\u2019re classified. Tax policy is also one of the biggest areas affected by<\/em> the formation of a partnership.<\/p>\n\n\n\n

Because this type of understanding is usually a job for financial professionals who have degrees in the right fields, we generally suggest that one of the partners is formally trained in<\/p>\n\n\n\n

The UAB MACC<\/a> program is a great way to ensure you or your partners have access to the right information when you need it.<\/p>\n\n\n\n

How to Form a Partnership<\/h2>\n\n\n\n

The formation of partnership businesses is pretty straightforward.<\/p>\n\n\n\n

You\u2019ll want to follow these steps:<\/p>\n\n\n\n

  1. Decide on who will register as partners<\/li>
  2. Decide on which type of partnership makes the most sense<\/li>
  3. Choose a name for the business<\/li>
  4. Register the entity with your state<\/li>
  5. Register for an Employer ID Number<\/li>
  6. Create a partnership agreement<\/li>
  7. Cross the I\u2019s and dot the T\u2019s (sign it all!)<\/li><\/ol>\n\n\n\n

    After you\u2019ve taken care of the paperwork, you\u2019ll be able to enjoy some of the benefits of a partnership, which include the fact that:<\/p>\n\n\n\n

    • Businesses that are partnerships don\u2019t have to pay income tax<\/li>
    • Each partner files their own profits or losses on their personal income tax<\/li>
    • It\u2019s not that expensive to get the business registered<\/li><\/ul>\n\n\n\n

      Growing into a Partnership<\/h2>\n\n\n\n

      Now that you understand how to form a partnership, it\u2019s crucial to take the next legal and financial steps to secure your investment.<\/p>\n\n\n\n

      Getting help from a qualified tax accountant is a great idea. Or, as we suggest, you can invest in yourself and your company by completing a MACC program yourself.<\/p>\n\n\n\n

      Check out our to get you started, and then head over to our limited liability corporation section for all of the necessary documents you\u2019ll need.<\/p>\n\n\n\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

      Looking to be the next Steve Jobs and Steve Wozniak? You\u2019ll want to create a partnership. When setting up a business as a professional, we\u2019re generally able to choose between four different types of partnerships. However, there\u2019s more to the process than simply picking the type of partnership you want to create. Understanding how to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"_links":{"self":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/2409"}],"collection":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/comments?post=2409"}],"version-history":[{"count":1,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/2409\/revisions"}],"predecessor-version":[{"id":2411,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/2409\/revisions\/2411"}],"wp:attachment":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/media?parent=2409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/categories?post=2409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/tags?post=2409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}