Business & Finance Entrepreneurship-startup

How to Start a Partnership Company

    • 1). Choose a business name. Partnerships are automatically named after the owners of the business. A partnership that wants to operate under a different business name must file a "doing business as" (DBA), or fictitious business name. The partnership's DBA can't be similar to the business name of another registered entity in the same state. Conduct a name availability search on the secretary of state's website where the partnership company is formed. Search name availability in the city or county where the partnership company operates. The county or city clerk's office may allow partnership companies to search name availability by phone, online, by mail or in person, depending on the city or county.

    • 2). Register the partnership company with the state and local government. This is only required if the partnership company chooses to operate under a DBA. A partnership company may be required to register the partnership's DBA with the secretary of state's office, as well as the city or county clerk's office where the partnership operates, as explained on the Citizen Media Law Project website. The cost to register a partnership with the county clerk and secretary of state's office varies depending on the county and state.

    • 3). Apply for a Federal Employer Identification Number (FEIN). To start a partnership company, you'll need to obtain an FEIN from the IRS. A partnership company can apply for an FEIN on the IRS website, by phone, mail or by fax. A partnership company that applies by phone or online will receive an FEIN for immediate business use. Partnership companies that apply by fax may wait up to four business days, while applying by mail may cause a four week delay.

    • 4). Register the partnership company for business taxes in the state where the business operates. The tax permits and license requirements may vary from business to business. For example, a partnership company that sells goods may be required to obtain a seller's permit, as well as a sales and use tax license. In general, a partnership company can register for business taxes with the state department of revenue office where the business operates. Some states have online registration, while other states may limit tax registration options to mail, in person or fax. Provide information such as the business purpose of the partnership company, and the FEIN.

    • 5). Apply for local and state licenses. The licenses and permits required to operate a partnership company vary depending on the nature of the business. Partnership companies that operate in certain locations may need a zoning permit. Most partnership companies will be required to get a general business license from the city or county where the business operates. Contact the city or county clerk's office to determine the licenses and permits needed to legally operate the partnership company.

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