A partnership can bring abundant opportunities for your business whether you are just starting out or looking to expand. However, before you can reap the benefits of your new arrangements, you will need to take care of a few logistical, and legal, issues. Here is a quick guide to the steps to a partnership for your business:
Smooth Out the Transition: Before entering any business agreement, you should iron out the details and make sure that all parties are in agreement. Since you’ll be working together with your prospective partners on a regular basis, having a good relationship is crucial. Make sure that all parties have addressed their concerns and that the appropriate contracts are drafted and signed.
Apply for an EIN: In many cases, a partnership will require a new Employer Identification Number, or EIN. You can get more information on whether your specific situation requires a new EIN on sites like https://www.govdocfiling.com/. The easiest and fastest way to get your new Employer ID is to fill out an online EIN application. You also have the option of submitting the paperwork by fax or mail, but you should be prepared for up to two weeks for a response. You may also need to register with your state for tax and legal purposes.
Licensing and Permits: Each new business arrangement comes with a bit of extra paperwork in terms of licensing and permits. Your specific business arrangement may, or may not, require new permits, which is why it is important to do thorough research and make sure that you have all filed all of the appropriate paperwork.
Not all businesses are alike and you may need to do more to ensure that your new partnership is off to a successful start. Whether you need to update your insurance, or purchase a new building, it is advisable that you get the essentials handled before you begin operations.