California Partnership Research Paper

622 Words3 Pages
A partnership is a for-profit business association of two or more persons. In a general partnership, the partners divide responsibility for management, liability and their share of the business' profits or losses; Shares are assumed to be equal unless a written agreement states differently. In the State of California the following is a list of steps that need to be followed in order to form a partnership. 1. Choose a business name for your partnership and check for availability. a. A general partnership in California will be automatically named according to the last names of its partners. However, a general partnership in California may use an assumed or fictitious business name. This will allow the general partnership to operate…show more content…
Draft and sign a partnership agreement. d. Indicate the responsibilities or duties of the partners. Include information such as the ownership interests of each partner, as well as provisions for the death or withdrawal of a partner. All partners of a California partnership must sign the partnership agreement. A general partnership in California should keep the company's partnership agreement at the primary place of business. e. Although not legally required, it is strongly suggested that you and your partners sign a partnership agreement laying out the rights and responsibilities of the partners. 4. File a statement of partnership authority with the California Secretary of State's office. f. This is an optional step to start a general partnership in California. Include information such as the purpose of the partnership, its name and location, and the names and addresses of each partner. According to the California Secretary of State's website, as of 2010, it costs $70 to file a statement of partnership authority. 5. Request an Employer Identification Number (EIN) from the IRS. This can be done via an online application and there is no filing fee. g. Form SS-4 is needed for this

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