Form a General Partnership in Georgia

You can create a general partnership in Georgia simply by joining someone in a for-profit business. There’s no requirement to file paperwork and register your partnership. General partnerships offer great tax advantages and are easy to form and maintain.

Let’s start by going over the pros and cons of general partnerships and then explain how to form a general partnership in Georgia. 

Step 1: Determine if you should start a general partnership

While general partnerships are convenient to create, you need to understand the good and the bad that comes with this business structure. We’ll explain some of the pros and cons of a Georgia general partnership. 

Pros

Partnerships provide the following advantages:

• They’re easy and inexpensive to create
• Maintaining them is simple 
• The business doesn’t pay income tax separate from its owners

General partnerships also offer great flexibility in terms of management.

Cons

A general partnership might not have all the qualities your business needs. Here are some disadvantages of partnerships:

• General partners are personally liable for the partnership’s legal and financial obligations
• Each partner is jointly and severally liable for the actions of the other partners
• Not as attractive to investors

If you’re unsure about starting a general partnership in Georgia, speak with a legal and financial professional. 

Step 2: Choose a Business Name

It’s important to choose a name that reflects your business, the products you sell, or the services you offer. Unregistered partnerships typically use the last name of the partners as their official business name.

There’s no requirement to register your business name unless you want to use a DBA (“doing business as”) name. 

Step 3: File a DBA Name (if needed)

With a DBA, your business can operate under a different name than its legal one. Businesses usually have a DBA name for branding purposes. 

In Georgia, you must register your DBA name with the county in which your business is located. Here’s how to register your DBA name in Georgia:

• Make sure no one else is using the name by running a name search
• File your DBA name application with the Clerk of the Superior Court in the county where your business is located
• Pay the applicable filing fee
• Publish a copy of your trade name registration in your local newspaper at least once a week for two consecutive weeks

You can also reserve your business name with the Georgia Secretary of State while you set up your business. 

Step 4: Draft and sign partnership agreement

With a Georgia general partnership, you can make most of the rules for running your business. By writing and adopting a Georgia general partnership agreement, you can determine the following:

• When and how new partners can join
• Roles and responsibilities of the partners
• How profits and losses are shared
• What events dissolve the partnership

This list is just a small example of what you can do with a partnership agreement. If you choose not to adopt one, then Georgia’s Uniform Partnership Act governs. You may not like how the law solves your business problems, so it’s important to write your own partnership agreement. 

Step 5: Obtain licenses, permits, clearances

When operating a general partnership, you’re subject to the same federal, state, and local licensing requirements as other businesses. Depending on your location and business activities, you may need a combination of licenses, permits, clearances, and certificates. 

Our partners at Avalara can create a Business License Report for you to know what’s required at the federal, state, and local levels. 

Step 6: Get an Employer Identification Number (EIN)

An EIN is a unique nine-digit number that the IRS assigns to businesses to identify them. Your general partnership needs an EIN to pay taxes, get financing, hire employees, and open a business bank account. You can either apply for one online or let us handle it for you with our EIN Service. 

Step 7: Get Georgia State Tax Identification Numbers 

Any entity that conducts business in Georgia may have to pay taxes depending on the type of business activity. Although general partnerships don’t pay income tax (since it passes through to the partners), they may still owe other types of tax, like sales and use tax or withholding tax.

To register your general partnership online and receive a tax account number, visit the Georgia Tax Center’s website.

Forming a Business Partnership in Georgia: Next Steps

After you’ve taken the steps listed above, there are a few more things to do to get your general partnership ready for business. 

Open a business checking account. This will help separate your personal and business finances and simplify filing taxes. 

Get insurance to protect yourself and your business. Some types of insurance are legally required in Georgia, so be sure to get the coverage you need. You will also want to keep up with your taxes.

How We Can Help

Starting a general partnership in Georgia is typically a straightforward process. When it comes to maintaining your business and staying legally compliant, that’s where the difficulty comes in. We’re here to help you with that side of doing business. We offer a wide range of products and services that are designed to keep your business on track. 

Depending on your business goals, a limited liability company (LLC) or corporation may be a better business structure for you. With our Georgia LLC and Corporation Formation Services, we can help you form your dream business.