Forming a Partnership in California

Here is an outline of the steps y'all need to follow in social club to form a partnership in California. You should as well read the full general section on forming a partnership for data applicable in any state.

ane. Choose a business name for your partnership and check for availability.

  • Please encounter our department on choosing and checking the availability of a name for your small-scale business, too equally our section on the trademark police aspects of choosing a proper name.

2. Register the business name with local, state, and/or federal regime.

  • If you will be operating your partnership under a name that is dissimilar from your name and that of your partners, then y'all will need to file a Fictitious Business Proper name Statement in the county in which your principal place of business is located.
  • Although you are non required to do so, you should consider registering your concern name as a federal and/or state trademark. Please see the Trademark for Business concern Naming section for details.

3. Draft and sign a partnership agreement.

  • Although non legally required, it is strongly suggested that you and your partners sign a partnership agreement laying out the rights and responsibilities of the partners. For details, please see the Partnership Agreements department.

4. Obtain whatsoever required local licenses.

  • Please run across the general section on forming a partnership for details.

5. Make up one's mind what revenue enhancement and other regulatory obligations your partnership has, and take care of any necessary registrations.

  • Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee.
  • If you will be paying at least $100 to an employee or employees (who are not partners) in a quarter, you are subject field to employment taxes and must register for a California employer account number within xv days of paying that $100. You can register for employment taxes and get an account number online using the Employment Development Department's website. Y'all must pay these taxes quarterly. For more information on being an employer, including revenue enhancement data, see the California Employer's Guide.
  • Whenever you hire an employee in California, y'all must inform both the IRS and the State of California. The IRS details all of the necessary steps, including verifying work eligibility and withholding allowances certificates, on its page entitled Hiring Employees. Y'all can find information for the country level in the California Employer's Guide and on the website for California's New Hire Reporting Program.
  • If you have whatever employees in California, yous must deport workers' compensation insurance. The Division of Workers' Compensation administers this program.
  • At that place may be other advisory returns that you will have to file annually or semi-annually with either the IRS or the Country. For more information, check out the IRS Guide To Data Returns and California Franchise Tax Board'southward Information Returns page.

6. Open up a banking company account for your business organisation.

  • It is a good thought to keep your business concern's finances separate from your personal accounts. A good way to do this early on is by opening a depository financial institution account for your business organisation. You lot probably volition need a Taxation ID number (EIN) and either a re-create of the partnership agreement or the business name filing indicating the partners' names. (Here is one example of the documentation banks enquire for.)

Jurisdiction:

  • California

Subject field:

  • Business Formation