General Partnership Package - District of Columbia 2025

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How to set up a business partnership Find a partner. The first step is to find someone with whom youd like to set up a partnership. Know what your business is going to be. The second step is to decide what kind of business you want to jointly operate. Create a partnership agreement. Register the business.
A partnership is created when at least two people or entities agree to do business together for profit. Partnerships are among the most common arrangements of business ownership in California. If you are considering a partnership, you will need to decide the type of partnership to form.
29602.02. (a) Except as otherwise provided in subsection (b) of this section, the association of 2 or more persons to carry on as co-owners of a business for profit shall form a partnership, whether or not the persons intend to form a partnership.
A general partner (known as a GP) is a manager of a venture fund. GPs analyze potential deals and make the final decision on how a funds capital will be allocated. General partners get paid through management fees, carried interest, and distributions from the fund.
A partnership is formed out of a contract. Co-ownership is formed either from an agreement or by the operation of the law, such as by inheritance. A partner is an agent represent the other partners. A co-owner is not a representative of other co-owners.
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An LLC is not a partnership, though many LLC owners casually refer to their co-owners as business partners. All LLC ownersknown formally as membersare protected from personal liability for business debts. Limited liability partnership.
There is no requirement that the parties subjectively intend to form a partnership, only that they intend to run a business as co-owners. No particular formalities are essential to the validity of a contract of partnership.

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