You and a friend have decided to go into business together, and you think you want to form a partnership. Hello, I'm Robert Todd, and I'm here to answer the question, "How do I form a partnership?" Well, one of the first things you might consider is contacting the Small Business Administration office that is close to the area where you intend to do business. Find out from them what licenses and registrations you need to make. The next step is to obtain a federal tax ID number from the Internal Revenue Service. Then, you may consider obtaining the appropriate identification number from your particular state's Department of Revenue. Next, you want to consider what's going to be in the partnership agreement. We strongly recommend that you have a partnership agreement that outlines who's going to do what, who's going to be compensated for their efforts in what ratio, and who would receive the assets and liabilities in the event that the partnership dissolves. You may wish to consult an attorney to draft a partnership agreement. I'm Robert Todd, and thank you for watching.
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Video instructions and help with filling out and completing When Form 4797 Partnership
