Partnership in business is one of the important factors that can affect business growth. The good news is that there are many opportunities to establish partnerships, especially nowadays, business people can be more easily connected, for example through social networks or entrepreneurship events. Well, the partnership itself consists of several types. Some do not need the legality of documents, but some do. The following are steps you can take if you want to form a business partnership based on legal principles.

 

Step 1: Define the Business Structure

The first thing you need to do to run a partnership efficiently is to determine in advance its structure. Therefore, find out information about your potential partner to determine whether the partner is suitable for the type of business you are running or not. In addition, also discuss your vision and goals with potential partners. Explain to them what contributions your business partners expect and what your priorities are. Do you want to focus on achieving financial stability or do you want to pursue your dreams in business. Only then can you determine the most appropriate structure for your business.

 

Step 2: Prepare the Partnership Agreement

A partnership must be done formally through an agreement that will regulate how the business will be managed and how profits and losses will be shared. In a partnership agreement document, you need to prepare some information such as:

- Who are the partners involved? Include their contact information as well.

- How will ownership be divided based on the partners involved?

- Who will manage the business and will each partner share the responsibilities and obligations?

- Do you have limited partners? If so, what are their contributions?

 

Step 3: Determine the Partnership Business Name

Before signing a business agreement, you also need to find the name of the available partnership business. At first, try to consult the name you want to apply to make sure the name is in accordance with existing regulations. After that, you also need to make sure that the name of the partnership you take has not been used by someone else. In this digital era, checking the availability of a partnership business name is very easy! In addition, you can also add information, such as "LP" which indicates that the partnership is a limited partnership.

 

Step 4: Registering the Partnership

Whether you form a partnership in the form of LP (Limited Partnership), LLP (Limited Liability Partnership), or LLLP (Limited Liability Limited Partnership), you need to register your business with the government. First of all, you need to first check what documents are needed to register a business. After that, you can start preparing the documents needed to register a business partnership. Typically, a partnership registration will include the names of each partner, contact information, their role in the business, and information on when the partnership will end. If your registration has been approved, be sure to save the partnership documents.

 

Step 5: Provide annual report

Whether your partnership is an LP, LLP, or LLLP, you need to submit an annual report to provide updates regarding basic information in your business. Besides being made annually, this report can also be made twice a year. Therefore, you need to first check what things are needed in making documents and make sure to note important dates so you don’t miss the requested deadline.

 

Each partnership certainly aims to provide benefits to each party, both in terms of profit, networking, awareness to customers, and so on. Therefore, you need to prepare well for the partnership!

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