Ask the Secretary of State`s office for a “Doing Business as” or a DBA form that you must submit to claim your business name. You must submit it separately from your partnership agreement using your state`s instructions. Several points related to the formation of a partnership are addressed in a typical article of the company. This includes a statutory article that may exclude the possibility of litigation concerning the partner responsible for certain tasks and partners who have special privileges or who are responsible for certain tasks. It can also give a partner the power to make decisions without the agreement of other partners and to be treated as partners who work outside the partnership or who wish to let them do so. Such an agreement will help a partnership avoid potential disputes related to profit or loss distributions by setting rules for them in advance. For example, if a partner contributes more time or money than other partners, they can expect a greater share of the profits. Of all the aspects of a partnership, managing partner contributions is one of the most important. Partnership articles should indicate who has what obligations, but it does not need to delegate all the tasks that might be considered. It should assign some key tasks, for example.
B who is responsible for tracking revenue and expenses and who manages the stock, and indicating what decisions can be made by whom. In addition, you should consider including clauses on whether partners can work for other companies outside the partnership or whether there should be a non-compete agreement when a partner leaves the company. The contracting parties voluntarily accept the partnership articles. A statutory contract is not imposed by any regulatory authority by law, but is considered a proven method. Partnership articles can be useful in preventing and resolving disputes between partners, as they clarify the terms of the relationship and explain how the assets of a partnership are shared. If, for example.B a partner has provided the initial idea of the partnership but no money and the rest of the partners contribute the same amount, will each partner be considered equivalent regardless of the cash contribution? Take the partnership agreement and partnership form to your secretary of state`s office. You can usually send the form in person or by mail or fax, but be sure to confirm the delivery. Fill out your state`s partnership form. Check the instructions carefully before signing them, as some states require the form to be certified notarized. If this is not the case, the partners should sign it. Contact the secretary of state`s office in your state and ask for documents related to the formation of a partnership. Note that there are different types of partnerships.
The most common is a general partnership agreement, a pact in which at least two people agree to start a business. You can also create a limited partnership, a company that only participates in one project if you don`t expect it to be a long-term business. Call the form that matches your business. In many cases, this form can be downloaded from the Internet. The statutes are a contract that forms an agreement between trading partners to pool labour and capital and participate in profits, losses and liability.