Skip to content
Ask a question
All posts

What are the steps to follow when creating a legal partnership in Pennsylvania?

Picture of Chris Battis By   ·  1 minute read

Steps to Create a Legal Partnership in Pennsylvania

  1. Choose a Name for Your Partnership: You need to choose a name for your legal partnership that does not conflict with any other registered or reserved name in Pennsylvania.
  2. File a Certificate of Partnership with the Pennsylvania Department of State: Partnership formation requires filing a Certificate of Partnership with the Pennsylvania Department of State. The Certificate of Partnership must contain the name of the partnership, a statement of the nature and purpose of its business and be signed by at least two partners.
  3. Get an EIN from the IRS: You will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes.
  4. Create a Partnership Agreement: A Partnership Agreement is not required by state law but it is highly recommended to avoid any disputes later on. The Partnership Agreement outlines each partner's duties and responsibilities, profit sharing, and other provisions. It's a good idea to consult with an attorney when drafting a Partnership Agreement.
  5. Obtain Licenses and Permits: Depending on the nature of your business, you may need to obtain licenses and permits from the state or local government. You should consult with an attorney or a business counselor from the Small Business Administration to determine which licenses you may require.
  6. File for a Fictitious Name if Applicable: If you want to use a name that is different from your own name or your partnership's legal name, you will need to file for a Fictitious Name (also known as Doing Business As or DBA) with the Pennsylvania Department of State.
  7. Comply with Other State and Federal Requirements: Depending on the nature of your business, you may need to comply with other state and federal requirements such as obtaining business insurance or complying with environmental regulations.

It is important to keep in mind that partnership laws and regulations can vary by state, so it's essential to consult a local attorney for specific advice. Also, the above steps do not intend to provide legal advice, and each situation can be unique, so it's recommended to consult with an attorney before starting a partnership.