Form a Partnership in California
Everything you need to know about forming a Partnership in California. Filing fees, requirements, timeline, and step-by-step guidance.
How to File
Choose Business Name
Select a unique business name and verify availability through California Secretary of State. Consider trademark searches for brand protection.
1-2 hours
Draft Partnership Agreement
Create a comprehensive partnership agreement outlining profit sharing, responsibilities, and dispute resolution procedures.
3-5 hours
Obtain EIN from IRS
Apply for an Employer Identification Number online through the IRS website for tax purposes and banking.
30 minutes
Register for State Taxes
Register with California Department of Tax and Fee Administration for sales tax and employment taxes if applicable.
1 hour
What's Next After Filing
Once your Partnership is officially formed, you'll want to complete these important steps:
- •Obtain Business Licenses — Apply for required local business licenses and permits specific to your industry and location.
- •Open Business Bank Account — Open a business bank account using your partnership agreement and EIN to separate business and personal finances.
Advantages
- ✓Simple formation with no state filing requirements
- ✓Pass-through taxation avoids double taxation
- ✓Flexible management structure and profit sharing
- ✓Lower startup costs compared to corporations
Considerations
- •Unlimited personal liability for all partners
- •Partnership dissolves if a partner leaves or dies
- •Potential for disputes without clear partnership agreement
Annual Obligations
What OpenChamber Does
We don't file paperwork for you — we guide you through doing it yourself, which saves money and helps you understand your business from day one.
Personalized Checklist
Every task you need, organized by priority and tailored to California.
Vetted Professionals
When you need help, we connect you with professionals we trust.
Progress Tracking
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