The Rise and Fall of the Business PartnershipDespite the availability of the modern Limited Liability Company as a business entity selection, if you still wish to start a formalized Partnership, you should generally form a Limited Partnership (or Limited Liability Partnership if your state offers such an option). To form a Limited Partnership, which is offered in most states, you would begin by filing a Certificate of Limited Partnership with the appropriate division of a state's Secretary of State. In Virginia, the Certificate of Limited Partnership is filed with the Commonwealth of Virginia's State Corporation Commission.
The next step after your Certificate has been approved by the appropriate state agency is to have a skilled business attorney draft the highly recommended Partnership Agreement between the partners which describes in detail such consideration as the structure and governance of the company, how the company is operated, partner disputes, succession plans, and dissolution procedures.
Federal Tax Considerations for a PartnershipAfter your Partnership Agreement has been drafted, approved, and signed by all partners, it is important register for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, with the Internal Revenue Service. A skilled business attorney, or tax attorney, can file an EIN on your LLC's behalf by having you sign a Form SS-4 authorizing the attorney as a Third Party Designee to act on your behalf. The EIN will not only be used for tax purposes but to open bank accounts in the Partnership's name as well as for employee considerations. It is also important to note that if your Certificate of Limited Partnership was filed in the Commonwealth of Virginia you should register your organization with the Virginia Department of Taxation.
The attorneys of McClanahan Powers, PLLC are skilled business attorneys and provide all services listed above.
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