A partnership is just one of the many types of business formations a person can select when two or more owners are involved in the company. We’re about to give you four things to consider when you are about to form a business partnership with someone.
- Ask Yourself: “Is This the Right Business Structure for Us to Choose?” – The fact is that there are additional benefits received by structuring the new company as an LLC or a corporation. There’s a little more paperwork at the start, but you may find that the tax and liability benefits far outweigh such a minor inconvenience.
- Determine if You Meet the Requirements – The state of California has requirements set out as to what comprises a partnership. Before forming the company, you need to be sure that your business will qualify.
- Choosing a Name for Your Business – You will have to see if your chosen business name has already been registered in the state. You will also have to agree on the name with your business partner.
- Drafting the Partnership Agreement – This contract contains vital details that will affect the business relationship of the partners. It is vital to have it professionally drafted, and several revisions may be required before the partners agree and sign it.
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Pokala Law is proud to be a small business that supports small businesses through providing affordable business legal services. To learn more about what we can do for your California business, contact us today at 1-844-695-1487.