Here we provide some basic steps for starting your partnership. These are the basic steps, and specifics may vary, depending on the location of your business and the nature of the business.

 1) The first step is to choose the official business name of your business. You will want a name that is distinctive (so that you can trademark it), available, and with an available domain name.

 2) The second step is actually a sub-step of the first; you need to make sure that the name you have chosen is available. This takes a little bit of work, but will save you a lot of potential time and money in the future if you are thorough. A basic and general first step is to put your potential name in a search engine, such as Google, to see if it is in use by someone else. This will quickly rule out many unavailable names. You should check with your county clerk’s office, to see if the potential name is among those listed in the database of fictitious or assumed business names. You can also check with your state’s filing office, to find out how to search their database of LLC’s, limited partnerships, and corporations. There are also various websites, which, while incomplete, can be searched to find registered and unregistered business names. Finally, you should definitely check with the U.S. Patent and Trademark Office (USPTO), to make sure that your potential name is not registered. They have an electronic database, here. Failure to do this could result in lawsuits for “willful infringement.” Your state may also have a trademark database that can be checked. It should be noted that, just because another company has the same name, does not mean that you cannot use it (though ideally you would pick a unique name). If a company that sells car parts in a different state has the same name that you want to use to sell pizza, you are not in competition and the customers will not be confused, so you may be able to use the name. If you are unsure, check with an attorney experienced with corporate structure matters.

 3) Once you have selected your name, you need to register it. There are a variety of reasons this needs to be done; failure to do so will mean that you cannot open up a bank account for the business and will be unable to enforce contracts written in the business’s name, etc. Registering is usually done at the office of the county clerk (though this is not the case in all states) and is a fairly simply procedure that they can guide you through. You should also consider registering your name as a trademark, to provide further protection. This is done with the U.S. Patent and Trademark Office.

4) You need to create and sign your partnership agreement. This should include:

-The name of the partnership

-The specific contributions to the partnership of each partner

-Distribution of profits, losses, and withdrawals of profits

-Authority of partners to make decisions that bind other partners

-How business decisions will be made

-Management duties

-Guidelines for the admission of new partners

-How to proceed in the event of the withdrawal or death of a partner

-Process for dispute resolution

 

5) You need to register your partnership with the Secretary of State.  This is usually required for limited and limited liability partnerships and involves providing a certificate or registration of partnership.  Details should be available on the website of your Secretary of State.

6) Finally, you need to obtain all of the appropriate business licenses and permits, on the federal, state, and local levels. This is where all the red tape and paperwork really starts to take a toll. Helpful information concerning requirements and permits is provided by the Small Business Administration, with their Small Business Development Center (SBDC).

 The first thing you need is a federal tax registration: an EIN (Employer Identification Number) if you plan on hiring anyone. This is Form SS-4, and is free from the IRS. In the event that your product is supervised by the government, you will need a license or permit from the appropriate federal agency. For example, public transportation and trucking are under the Motor Carrier Safety Administration, investment advice is monitored by the Securities and Exchange Commission, preparation of meat products or production of drugs is under the Food and Drug Administration, and tobacco products, alcohol and firearms are regulated by the Bureau of Alcohol, Tobacco and Firearms in the U.S. Treasury Department. It is possible that the EPA (Environmental Protection Agency) has laws that are applicable to your situation. You can find their overview of small businesses on their website, here.  

You may also need to comply with both federal and state securities laws, if you are involved in a limited liability partnership. This is to protect investors who are not involved in the running of the business. You need to register with the SEC (Securities and Exchange Commission), which will take time and involves additional legal and accounting fees. More information can be found on the website of the SEC, here.

There are more requirements on the state level. The first is to check if you need a license or permit for your product or occupation in your state. You can check on your state’s website or with the trade association. Details will vary from state to state concerning every aspect of this process. There are various tax registrations that you will need to fill out; you may need a sales tax license or something comparable. This will probably be done with you state treasury department or department of revenue. If you have employees, you probably need to register with the department of labor in your state or with the agencies in charge of unemployment or workers’ compensation. Furthermore, if your state has some type of OSHA laws, then you will need to meet certain requirements concerning health and safety. There are additional tax requirements, such as withholding Social Security, Disability, etc, of which you should keep records so you can pay taxes on them. Make sure that you have an employer ID number from your state tax authority. Finally, check to see if your state’s environmental protection agency has any regulations that affect your business.

There are further step you need to take to make sure that you comply with local ordinances. Most cities do not have a specialized agency to provide start-up information for businesses, but other offices will certainly be able to give you important information, including:

 -The city and county clerk: Can advise if you need a tax registration certificate, or something comparable.

-The building and safety department: Can advise concerning the building codes and appropriates permits.

-The health department: Can tell you what permits you may need.

-The planning/zoning department: Can tell you if the place from which you plan on operating your business complies with local zoning ordinances or what would be needed to be rezoned, to get a variance, or a conditional use permit.

-The tax office: Can advise if you need a tax registration certificate, or something comparable.

-The fire, police, and public works departments: Can provide information concerning crowd control, necessary safety precautions, and storage of combustible materials.

-The assessor or treasurer: Can provide information concerning taxes on all aspects of your business.

 

You may also want to seek advice from the local chamber of commerce, a trade association, local contractors, people running local businesses similar to your own, or a small business attorney.

You should check to make sure that the place from which you operate your business complies with all local zoning ordinances. Obviously, this should be done BEFORE you sign a lease or you could make the signing of the lease contingent upon getting the appropriate rezoning, variance, or conditional use permit. There will also be building codes with which you must comply if you are doing any renovations for your business. Be careful with moving in to an old building an expecting that it is up to code. The former owner may have been “grandfathered in,” but building code changes frequently and you may need to pay for expensive renovations. An experienced contractor can help you out in this area.

There may also be local environmental laws with which you need to comply.