1. Decide on the business structure:
A business partnership can be structured in a number of ways, and it’s important to decide on the structure early on to avoid any potential problems. The most common types of business structures are sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its own set of benefits and drawbacks, so make sure you research each one before making a decision.
2. Set up bank accounts and credit lines:
Once you have decided on the business structure, you will need to set up bank accounts and credit lines for the business. This will allow you to start doing business and taking payments from customers.
3. Draft partnership agreements:
A partnership agreement is a document that outlines the terms and conditions of the business partnership. It includes things like how profits and losses are divided, how decisions are made, what happens if someone leaves the partnership and more. It’s important to have a Partnership Agreement in place to avoid any potential disputes down the road.
4. Assign roles and responsibilities:
In a partnership, it’s important to clearly define everyone’s role and responsibilities. This will help ensure that everyone is aware of their duties and knows what is expected of them.
5. Agree on the decision-making process:
In a partnership, it’s important to agree on a process for making decisions. This will help ensure that all decisions are made collaboratively and everyone is in agreement.
6. Establish company policies and procedures:
In order for the business to run smoothly, it’s important to establish company policies and procedures. This will outline how the business should operate and what is expected of employees.
7. Create a business plan:
A business plan is a document that outlines your business goals and strategies for achieving them. It’s important to create a business plan so you have a roadmap for growing your business.
8. Register with the state or local government:
In order to do business in your state or locality, you will need to register with the appropriate government agency. This will involve filing some paperwork and paying associated fees.
9. Get business licenses and permits:
Depending on your industry and location, you may need to obtain certain licenses and permits in order to operate your business legally. Make sure you research what is required in your area so you don’t run into any surprises down the road.
10. Purchase insurance:
In order to protect your business, you will need to purchase commercial insurance. This will cover your business in the event of property damage, liability claims, and more.