Starting a business partnership in New Jersey can be a lot of hard work, especially if you jump into the process without having a lot of financial and personal support. Many people decide to start a business with a partner who has equal career goals and professional experience. Business partnerships are generally easier to set up than limited liability companies or corporations, but they still require proper planning and resources.
What Steps Should I Take to Start My Business Partnership?
- Decide on your business name. Many businesses use the names of each partner, but it is completely up to you and your partner how you would like to name your new company.
- Search for availability. Ensure that your chosen business name of your partnership is actually available before you continue. You don’t want a similarity to any existing businesses, so make sure that you have a unique partnership that will stand out among the rest.
- Register your partnership name. Register your business once you have decided on your name and you have researched other similar partnerships.
- Make and sign a written partnership agreement. This agreement is a very crucial document that helps form your partnership. It should outline the responsibilities and terms that will affect each partner. Other things it will include are:
- Your business’s name
- Each partner’s contributions (responsibilities and duties)
- How profit and loss will be distributed
- What authority and decision-making power each partner will have
- Register your partnership. You also have to register your partnership by filing a certificate of partnership with the Secretary of State Office. This step is usually required for limited liability partnerships (LLPs) and limited partnerships, instead of other general partnerships.
- Get your business permits and licenses. In order to legally operate your business, your partnership must follow all licensing and permitting requirements. Research the federal, state and local permits and licenses that you will need for your specific partnership.
If you are interested in starting a business partnership, you should also contact a business law attorney who can give you more crucial legal information. Contact Gelman Law LLC today.