How to Form A Nevada Partnership

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What Is A Partnership?

You may be asking how to form a Nevada Partnership. Let’s define what a partnership is first. A Partnership is a type of business entity where two (2) or more people are in agreement to form and conduct business. Partnerships can be in a form of LIMITED PARTNERSHIPS (LP) or LIMITED LIABILITY PARTNERSHIPS (LLP).

Limited Partnership

In a Limited partnership setup (LP), only one partner has unlimited liability while other partners are limited. Partners with limited liability are also limited in their control or authority as documented in the partnership agreement.

Limited Liability Partnership

Limited Liability Partnerships (LLP) have a similar setup with LP but limited liability applies to every member or owner. It protects each partner from debts incurred by the partnership, and won’t be responsible for the actions of other partners.

This form of entity is ideal for business structures with multiple owners and groups in the formative stage of launching their business ideas.

Major Advantage

The major advantage of a partnership is the fact that it is a pass-through entity that doesn’t pay its own income tax. It is filed as an informational tax return with the IRS (Form 1065). The prorated share of income and expenses are reflected on each partner’s personal return where due taxes are paid by the partners. Unfortunately, this setup has increased personal liability. Each member of the partnership is legally responsible for the financial obligations of the business.

Seek Assistance From An Attorney

Establishing a partnership agreement on hand with an attorney’s assistance is strongly advisable to outline how the partnership will operate and the details on how to handle cases when partners leave, adding new partners, changing the business, or shutting the business down.

If you want to know how to form a Nevada Partnership, here are the steps.

FORMING A NEVADA PARTNERSHIP
  1. 1
    Come Up With A Business Name

    Make The Name Unique

    It is important to start out a business with a unique and identifiable name to establish your business entity. It is not just to attract your target market but it also helps build the reputation for the business you are creating.

    Helpful Link

    Click on the link for a guide to help you on How to Come Up with a Business Name?

  2. 2
    File Trademark on Business Name

    Filing With The Appropriate Department

    Filing with the Nevada Secretary of State is the next important step in establishing your business. Not only does this enable you to legally conduct business operations but it would also protect your business name.

    Helpful Links

    Filing a Trademark for your Business simply means that you process a “Registration with the Nevada Secretary of State” by creating an online account via SilverFlume after “Coming Up with a Good Business Name

  3. 3
    Complete Paperwork

    It is not possible to run a business without processing the registration with the Nevada Secretary of State. Depending on the location of the business, you might have to secure other licenses and permits.

    Limited Partnerships (LP) in Nevada are required to file a Certificate of Limited Partnership while a Limited Liability Partnership (LLP) requires the filing of a Limited-Liability Limited Partnership Registration with the Nevada Secretary of State.

  4. 4
    Process Tax Registration and Additional Licenses

    Tax Registration

    Determining the need for registration with the Nevada Department of Taxation to obtain a Federal Employer Identification Number depends on your business setup. If your business sells a product, you will have to register for Nevada Sales Tax.

    EIN

    In case your business requires hiring an employee, you would have to obtain a Federal EIN. Additional licenses from the state in some partnerships are required to do business. A good example would be in the case of electricians, plumbers, and other types of contractor businesses. Moreover, an EIN is also required as a requisite in opening a bank account.

    Helpful Link

    Click on the link for a guide to help you on How to Process Tax Registrations in the State of Nevada

  5. 5
    Open a Bank Account

    Importance

    It is a must to open a bank account in the name of your business to ensure your liability protection. Setting up a bank account offers a lot of benefits, especially in protecting partners assets from creditors. This will also make it easy and convenient for your accountant to handle bookkeeping records.

    Helpful Links

    Now that you know all of the steps you need to take to form Nevada Partnership, click HERE to start your registration. Opening a bank account for business purposes regardless of the Business Structure follows a similar format. Click on the link for Guidelines on How to Open a Bank Account for Your LLC

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      What Is A Partnership? You may be asking how to form a Nevada Partnership. Let’s define what a partnership is first. A Partnership is a type of busine
      [See the full post at: How to Form A Nevada Partnership]

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