Partnership Formation Service

Start a Partnership the Right Way — With an Expert.

Form your Partnership with expert guidance. Kick Start Companies makes partnership formation simple, affordable, and stress-free.

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How It Works

How to form
your partnership

Our simple six-step process guides you through partnership formation.

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01

Choose Your Partnership Type

Decide between a General Partnership, Limited Partnership (LP), or Limited Liability Partnership (LLP) based on your business needs.

02

Name Your Partnership

Select a unique business name that complies with your state's naming requirements and register it with the appropriate state agency.

03

Draft a Partnership Agreement

Create a written agreement outlining each partner's contributions, responsibilities, profit sharing, and decision-making authority.

04

Register with the State

File the necessary formation documents with your state. LPs and LLPs require formal registration; GPs may only need a DBA.

05

Obtain an EIN

Apply for an Employer Identification Number (EIN) from the IRS for tax purposes and opening a business bank account.

06

Get Required Licenses & Permits

Research and obtain any business licenses or permits required in your state, county, or city to operate legally.

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Partnership Structures

Types of Partnerships

Understanding the different partnership structures available

General Partnership (GP)

All partners share equal responsibility for management and personal liability for business debts.

Limited Partnership (LP)

Includes general partners who manage the business and limited partners who invest but have limited liability.

Limited Liability Partnership (LLP)

All partners have limited personal liability protection, commonly used by professionals.

Family Limited Partnership

A type of LP used for estate planning and transferring assets within a family.

Benefits & Considerations

Benefits of a Partnership

Why forming a partnership might be right for your business

Advantages

Easy and inexpensive to establish
Pass-through taxation simplification
Shared workload and responsibilities
Combined skills and expertise
Flexible profit sharing arrangements
Minimal regulatory requirements

Considerations

Unlimited personal liability in GPs
Potential for partner disputes
Shared decision-making required
Difficult to transfer ownership

Common Questions

Everything you're wondering
about starting a partnership

Get answers to common questions about partnership formation

A partnership is a business structure where two or more individuals share ownership and responsibility for running a business. Partners contribute money, property, labor, or skills and share in the profits and losses of the business.

The three main types are General Partnerships (GP) where all partners share liability, Limited Partnerships (LP) with both general and limited partners, and Limited Liability Partnerships (LLP) where all partners have liability protection.

While not always legally required, a written partnership agreement is highly recommended. It clarifies each partner's rights, responsibilities, profit sharing, and procedures for resolving disputes or dissolving the partnership.

Partnerships are "pass-through" entities for tax purposes. The partnership itself doesn't pay income tax. Instead, profits and losses pass through to partners who report them on their individual tax returns.

The main difference is liability protection. In a general partnership, partners are personally liable for business debts. An LLC provides limited liability protection, separating personal assets from business obligations.

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