To legally establish a partnership in Illinois, there are several steps you must take:
- Choose a Business Name. First, you will need to choose a name for your partnership. Once you have chosen a name, you should conduct a name search to make sure that the name is not already in use in Illinois. You can conduct a name search on the Illinois Secretary of State's website.
- Choose a Business Entity. Next, you will need to choose a business entity for your partnership. In Illinois, you can choose to form a general partnership, a limited partnership, or a limited liability partnership.
- File Partnership Agreement. Once you have chosen a business entity, you will need to file a partnership agreement with the Illinois Secretary of State. This agreement should outline the roles and responsibilities of each partner, as well as ownership percentages, profit and loss sharing, and other important details.
- Obtain an EIN. You may also be required to obtain an employer identification number (EIN) from the Internal Revenue Service (IRS). An EIN is necessary if your partnership has employees or plans to hire employees.
- Obtain Necessary Licenses and Permits. Depending on the nature of your partnership, you may need to obtain certain licenses and permits from the state of Illinois or local government agencies.
- Register with Illinois Department of Revenue. If your partnership will be selling goods or services, you will also need to register with the Illinois Department of Revenue to obtain a sales tax permit.
It is recommended that you consult with a licensed attorney in Illinois to ensure that you have completed all necessary steps and properly formed your partnership. Failure to comply with legal requirements may result in penalties or other legal consequences.
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