When two or more individuals decide to go into business together, one of the business forms they can choose is a partnership or a general partnership (GP). Partnerships are easy to create since there is no need to file a certificate with the state, are less expensive than other options and partners have joint liability and joint authority.
A general partnership requires a partnership agreement which generally includes partners’ rights and responsibilities, share of profits and, other details regarding ownership. A decision that also needs to be made when forming a partnership is if you will conduct business in the names of the partners or file to register and use a DBA (“doing business as”). The business name can be used to open a bank account and also to conduct business.