Starting a business can be an exciting and sometimes overwhelming process. When it comes to starting a General Partnership business in Minnesota, there are some simple steps you can take to ensure everything is done right. In this article, we'll take a look at the steps necessary to create a General Partnership in Minnesota.
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What is a General Partnership?
A General Partnership is an unincorporated form of business organization in which two or more individuals or entities share all of the profits or losses of the business. It is one of the simplest forms of business organizations and can be created without filling out any formal paperwork or filings.
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Steps to Create a General Partnership in Minnesota
1. **Choose a business name**: The first step when creating a General Partnership is to decide on a business name. The name must be unique and not already in use in Minnesota. You can check for available business names on the Secretary of State's website.
2. **Agree on a business agreement**: Before starting the business, you must create an agreement with your partner that explains the roles, responsibilities, and profits of each partner. Every partner must have a copy even if there isn't a written agreement.
3. **Register your trade name**: Partnerships in Minnesota do not need to file for a business registration in order to form. However, they do have to register their business name with the Secretary of State. This is called registering for your “Assumed Name” or “Fictitious Name.” This is done with either the appropriate form or with the more current online filing.
4. **Determine if you need any licenses or permits**: Depending on the type of business you plan to operate, you may require specific state or local licenses and permits. You can check for necessary licenses and permits on the Minnesota Department of Revenue website.
5. **Apply for an Employer Identification Number (EIN)**: If your company is scaled for your General Partnership, you are required by the Federal government to obtain an “Employer Identification Number” or “EIN.” Due to the General Partnership’s unique tax status entails both parties report the partnership profit or loss 1065 so that two individuals’ income can be factor into personal income by the IRS
6. **Get Business Insurance**: Despite Minnesota companies do not search insurance record for incorporation financial liability its is helpful to become a credible company listing employee and employers partnerships in relation in making this possible.
Conclusion
As with any new business organization, it's essential to carefully consider your options and plan accordingly when forming a General Partnership in Minnesota. Consider hiring a lawyer or accountant to help guide you through the process. By following these simple step in creating a General Partnership in Minnesota, you’re on your way to creating a successful business partnership.
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