Partnerships

[Buck Tadlock]

Looking for explanation on how to go about forming a partnership (LLC) to advance investing to another level. I seem to be stuck spinning my wheels and need a push.
Thanks

[Jon Holdman]

Forming such a partnership is easy. Nearly trivial. Go to the Secretary of State's web site and create a LLN. Go to the IRS web site and get an EIN. Take both of these to a bank and open an account. Both of you put in half the minimum the bank requires to open an account and you have a partnership. At the end of the year, file a partnership return and send each partner a K-1.

A better question is why do you want a partnership? What is the partnership trying to accomplish? What is each partner going to contribute? What is each going to get back? How long will it last?

Writing an operating agreement is hard. You may want to have an attorney help. You have to consider all the bad things that might happen, including the two of you facing each other in a court room. Or, one of you facing the other's pissed-off heirs wanting their money after the deal has gone bad and your partner had died.

So, what are you trying to do?