{"id":4812,"date":"2016-04-04T10:47:45","date_gmt":"2016-04-04T15:47:45","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/incorporation-and-legal-structures\/checklist-starting-a-partnership.html"},"modified":"2025-10-20T22:27:00","modified_gmt":"2025-10-21T03:27:00","slug":"checklist-starting-a-partnership","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/checklist-starting-a-partnership.html","title":{"rendered":"Checklist: Starting a Partnership"},"content":{"rendered":"\n
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Checklist: Starting a Partnership<\/h1>\n\n
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\n By Jade Yeban, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A partnership checklist<\/span> involves the necessary requirements to set up a partnership including choosing a business name, deciding on the partnership type, drafting a partnership agreement<\/span>, and obtaining licenses and permits.<\/p>\n\n <\/div>\n\n\n\n

Starting a business partnership<\/span> can be an exciting venture for entrepreneurs<\/span>. However, it\u2019s essential to follow a series of steps to comply with legal requirements<\/span> and ensure your partnership\u2019s long-term success<\/span>. Partnerships are easier than corporations and limited liability companies (LLCs) to set up. But they still need some effort to get off the ground.<\/p>\n

In this article, we\u2019ll provide you with a partnership checklist<\/span> to use when starting a business partnership<\/span>. Remember that while this guide provides a general overview, it\u2019s always a good idea to seek legal advice tailored to your specific situation.<\/p>\n

Need help with business formation? Our trusted partner LegalZoom makes it easy\u2014packages start at $0 + state filing fees.<\/a><\/strong><\/p>\n

Decide on a Business Name<\/h2>\n

The first step in starting a business partnership<\/span> is deciding on a name for your venture. It should reflect your business idea<\/span> and be memorable to potential customers. When\u00a0choosing a name for your partnership<\/a>, you may decide to use the names of the partners\u00a0as many law firms do, for example. Or, you might go with something more descriptive of the business. You also may choose a\u00a0fictitious business name<\/a>, or \u201cDoing Business As” (DBA), under which to advertise and promote the partnership. Take time to brainstorm and choose a name that represents your business values and goals.<\/p>\n

Search Availability of Your Partnership Name<\/h2>\n

After deciding on a business name, you will want to check if it\u2019s available for use. You can do this by conducting a name search with your state\u2019s business registration office. Check to see whether your ideas are already on the list of fictitious or assumed business names on record with your county clerk or\u00a0Secretary of State<\/a>. The\u00a0Small Business<\/span> Administration<\/a>\u00a0(SBA<\/span>) and local zoning offices can provide guidance in this area.\u00a0<\/p>\n

There are many sources for searching the\u00a0availability of a business name<\/a>, including the U.S. Patent and Trademark Office\u2019s\u00a0trademark search tool<\/a>, but you may want to start with just a simple Internet search.<\/p>\n

Even if the name is not taken by another business, your general search may reveal that the chosen name already has associations that would be detrimental to your business or confusing to customers. This step ensures that your chosen name is not already in use by another business in your state. Also, look for similarities to existing names (which can cause confusion or present image problems). Avoid legal disputes later on by searching the availability of your name.<\/p>\n

Register Your Partnership Name<\/h2>\n

Once you\u2019ve confirmed the availability of your business name, you should register it with the appropriate state authorities. Registering your partnership name provides legal protection. It also helps ensure that no one else can use the same name within your state. This step typically involves filing the necessary paperwork for your business structure. You will also need to pay the required fees.<\/p>\n

To establish your business as a legal entity, you may need to register it with the state where you plan to operate your business. You also must register your partnership by filing a “certificate” or “registration” of partnership with the\u00a0Secretary of State<\/a>\u00a0office. This step is required most often for limited liability partnerships (LLPs) and limited partnerships, as opposed to general partnerships. You can\u00a0learn more about types of partnerships<\/span>\u00a0here<\/a>.<\/p>\n

Decide on the Type of Partnership<\/span><\/h2>\n

Choosing the right type of partnership<\/span> is a crucial decision for business partners<\/span>. There are different types of business partnerships<\/span>. Each type has its own set of characteristics and implications for personal liability and decision-making<\/span>. A general partnership is where business partners<\/span> share equal responsibility for the business\u2019s operations. Each partner also has unlimited liability for the business\u2019s debts and obligations.<\/p>\n

A\u00a0limited partnership<\/a>\u00a0consists of general partners who manage the business and limited partners. Limited partners invest capital but have limited involvement in day-to-day operations<\/span>. Limited partners also have limited liability. This means their personal assets are protected to the extent of their investment. General partners maintain unlimited liability.<\/p>\n

A\u00a0limited liability partnership<\/a>\u00a0provides personal liability protection to individual partners. This shields partners\u2019 personal assets from business-related debts and lawsuits. They are commonly used in professional services firms, such as law or accounting practices.<\/p>\n

Consider getting legal help when deciding which type of partnership<\/span> is right for you and your business.<\/p>\n

Create and Sign a Written Partnership Agreement<\/span><\/h2>\n

The\u00a0partnership agreement<\/span><\/a>\u00a0is a very important document in the formation of a partnership. Successful partnerships<\/span> outline the terms and responsibilities that affect each partner in the agreement. The agreement will include the name of your business and the contributions, duties, and responsibilities of\u00a0each partner.<\/p>\n

It should address important aspects like partner shares, procedures for decision-making<\/span> and dispute resolution<\/span>), personal liability protection, and succession planning<\/span>. It is advisable to consult with a legal professional when drafting this agreement. Lawyers can help ensure the agreement aligns with state law and your business needs<\/span>.<\/p>\n

Obtain Business Licenses and Permits<\/h2>\n

Depending on your business activities and location, you may need to obtain specific licenses and permits to operate legally. These requirements vary by state and industry. For instance, a law firm organized as a partnership must ensure that each partner is a licensed attorney. The types of licenses and permits include the following:<\/p>\n