The simplest form of a partnership, the general partnership offers no liability protection but also isn’t hindered by very many laws, offering maximum freedom to do business as you wish.General Partnership lawyer in delhi.
- No liability protection, each partner is personally liable for all of the company’s debts
- Your personal assets, such as your home or cash, can be seized to settle business debtsIncome from the business passes through to your personal income, where it is taxed as income
- Exempt from a lot of rules regarding how the business should be named, ran, and maintained—no need for lots of complicated paperwork
How to Form a Partnership in Indiana
There are a number of steps to take before a partnership can be legally operated in Indiana:
Step 1: Select a business name
All business names in Indiana must include an indication of the entity type (LP, LLP, etc.). Beyond that, business owners can be very creative in selecting a name that they find appealing and that attracts the kind of customers they want.
Step 2: Register the business name
Search the state’s business database once you’ve come up with a name you like to verify it hasn’t been claimed already. Once that’s done, secure your new business name by filing it with the Indiana state government.
Step 3: Complete required paperwork
In India, most partnerships are required register with the state, pay a filing fee, and file the required paperwork.
General Partnerships (GP) – General partnerships file a Certificate of Assumed Business Name to establish their legal business name. Although not required, many general partnerships draft a partnership agreement to outline how the business will be managed. This is a document that is kept on hand by the owners and is not filed.
Limited Partnerships (LP) – LPs need to file a Certificate of Limited Partnership to do business within Indiana. Like a general partnership, they too may create a partnership agreement.
Limited Liability Partnerships (LLP) – LLPs must turn in an Application for Registration of an LLP with the state.
Step 4: Determine if you need an EIN, additional licenses or tax IDs
Partnerships may need an Employer Identification Number (EIN) from the IRS. This number is used to hire employees, fill out paperwork, and open bank accounts for the business. It is like a social security number for a company.
Also, some businesses need additional licenses from the state. Finally, additional taxes may also need to be paid.
Step 5: Get your day to day business affairs in order
Once the partnership has been properly formed, double check to ensure a proper business foundation has been laid:
Open a business bank account
Get insurance for your company
Create a website for your partnership
Pooja Shukla will help you choose which partnership may be right for you. We can also file the paperwork to form your business, help you find a registered agent, and get you in touch with an attorney or tax professional.