A business with multiple owners is often known as a partnership. With more than one person running the show, a business can both benefit and struggle with distinct personalities and skill sets. Since partnerships are legal entities, they are best formed with the help of a business law attorney well-versed in state law. Here are five steps that should be followed in order to create a partnership in the state of New Jersey:
Choosing a name
What is in a name? If you are seriously asking that question, you may not be ready to start a business. If you are forming a partnership, you obviously must come to a consensus. Begin with basic criteria. Will the name be appealing to potential clients? Does the name reflect how you would like your business to be received? Make sure the name has not been taken. The type of business entity should also be included. For example, the abbreviation for a limited liability partnership is LLP, which should appear after whichever name you choose. Furthermore, depending on your industry, there may be requirements regarding the name of your partnership. Be sure to check into this.
Registering it
Once the partners agree on a name, it must be registered. Business paperwork must be filed with the New Jersey Department of Revenue.
Filing paperwork
First, you must complete the paperwork. Your attorney can assist to ensure that you did not miss anything. Then, along with the current filing fee, a formal partnership filing must be filed with the Department of Revenue.
Obtaining IDs & Licenses
If you plan to open a business bank account or credit card, it is helpful to have an Employer Identification Number (EIN). You especially have to have one if you plan to hire employees. Get one from the IRS. If you are a plumber, electrician or any other type of contractor, additional licenses are required.
Getting started
Once you receive a certified, stamped copy of the paperwork from your filing, you are ready to get started. Open that business bank account. Make sure that the business can receive mail and legal notices at a physical address. Most importantly, have a business law attorney craft a partnership agreement. However, the same attorney should not represent all the partners. Each partner should have their own respective attorney to negotiate the terms of the partnership agreement.
If you have any questions regarding partnerships, contact this office for an initial consultation.
The Law Office of H. Benjamin Sharlin LLC
is owned and operated by H. Benjamin Sharlin and serves all of Mercer County, New Jersey and the surrounding areas. Mr. Sharlin is a bilingual Spanish-speaking attorney who vigorously represents the interests of all his clients.
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