A partnership contract is a necessity when you open a business with another person. The agreement has two objectives: it establishes a legal document that provides for the rights and obligations of each partner and offers you legal recognition by the state so that you can do business. The exact procedure for submitting a partnership contract varies slightly from place to place, although the overall approach is the same regardless of where you live. Contact the secretary of state`s office in your state and ask for documents related to the formation of a partnership. Note that there are different types of partnerships. The most common is a general partnership agreement, a pact in which at least two people agree to start a business. You can also create a limited partnership, a company that only participates in one project if you don`t expect it to be a long-term business. Call the form that matches your business. In many cases, this form can be downloaded from the Internet. Create a partnership agreement. Several forms are available online as a possible starting point. In general, the partnership agreement should contain the full legal name of each partner, the name of the company, the percentage of capital that each partner contributes to distribute, how the profits are distributed, how the new partners are welcomed and how the partnership can be broken. Partnership agreements provide each partner with a legal document to rely on in the event of more important issues.
Take the partnership agreement and partnership form to your secretary of state`s office. You can usually send the form in person or by mail or fax, but be sure to confirm the delivery. Fill out your state`s partnership form. Check the instructions carefully before signing them, as some states require the form to be certified notarized. If this is not the case, the partners should sign it. Take the partnership contract you have developed and have it authenticated by the notary. This means that each partner must sign the form in the presence of the notary. While not all states have to be certified, there is nothing wrong with taking this step. If your state requires the partnership form to be notarized, let it do so at the same time.
Ask the Secretary of State`s office for a “Doing Business as” or a DBA form that you must submit to claim your business name. You must submit it separately from your partnership agreement using your state`s instructions. Pay the registration fee when you submit your partnership form. This can usually be paid by cheque, credit card or payment order.