Form a General Partnership in Nevada

A Nevada general partnership comprises two or more owners who co-own a business together. A partnership is distinct from an LLC or a corporation, as it does not require you to create a formal entity with the state. However, those may also be good options.

Below, we’ll explore what a partnership is, how to form a general partnership in Nevada, and if it’s the right type of entity for you.

Step 1: Determine if you should start a general partnership

Some business owners might find a Nevada general partnership the perfect vehicle, while others may want to consider other entities. Let’s look at the benefits and drawbacks of forming a Nevada general partnership to see if it’s right for you.

Pros

The following are some of the significant advantages of a Nevada general partnership:

• In most cases, creating a general partnership in Nevada is as simple as crafting an agreement. 
• A general partnership in Nevada is not subject to the same strict maintenance requirements of LLCs and corporations.
• In a Nevada general partnership, taxes are straightforward. For tax purposes, the partnership’s income will be passed directly to you and your partners. This means you do not have to pay a separate corporate income tax like you would with a corporation.

Cons

Some people may not find a Nevada general partnership to be the best solution. Some of the possible disadvantages of forming a general partnership in Nevada are as follows:

• Both partners share the debts and liabilities of the partnership. This means you may be personally liable for the amount owed if your partner incurs a large debt in the partnership’s name.
• You might also be held responsible for your partner’s negligent acts or other misconduct.
• Partnerships also have stricter rules for transferring ownership and may limit options for raising capital as compared to corporations.

A general partnership in Nevada is a fantastic option for short-term business projects. However, a general partnership may not be ideal for longer projects or businesses with many risks.

Step 2: Choose a Business Name

Because a Nevada general partnership is not a formal entity, the name of your partnership will generally be composed of the last names of the partners. To establish a separate assumed name, you’ll need to register a DBA (doing business as). If you already have a name in mind, check to see if your business name is available.

Step 3: File a DBA Name (if needed)

To register a DBA (“doing business as”) for your Nevada general partnership, you will need to register the name with the county clerk in the county where you wish to do business. Ensure that your chosen business name is different from any existing businesses in Nevada and that it does not imply illegal activity.

Step 4: Draft and sign partnership agreement

A partnership agreement is one of the most critical parts of forming a general partnership in Nevada. The partnership agreement establishes the framework and standards for the partners. Having rules and expectations in place may help the partners solve future disputes, should they arise. If the partners don’t have a partnership agreement, they will rely on the Nevada Uniform Partnership Act to handle conflicts.

Step 5: Obtain licenses, permits, clearances

You may be required to obtain a business license for a Nevada general partnership. You can obtain this license through the state’s business portal. Nevada requires licenses for certain occupations and businesses. Some of the business licenses in Nevada include:

• Sports agencies
• Charities
• Securities

You may need to check with your county and city to see if your business requires any types of local licenses. We can help you obtain business licenses and permits with our Business License Report service.

Step 6: Get an Employer Identification Number (EIN)

An EIN is an identification number that the Federal government issues to businesses. For example, if you want to open a bank account for your business, hire employees, or get financing for your partnership, you will need this number. Fortunately, we can help you obtain an EIN quickly and easily.

Step 7: Get Nevada State Tax Identification Numbers 

You may also need to register your business in Nevada for tax purposes. If your revenues exceed $4 million, you must file a commerce tax return. A Nevada general partnership may also have to collect sales and use taxes. You can register your business to pay Nevada taxes on their web portal.

Forming a Business Partnership in Nevada: Next Steps

Once you have formed a Nevada general partnership, there are some other things that you might want to consider. If you have obtained an EIN, you may want to set up a business bank account. This will help you keep your business finances separate from your personal finances.

If your business deals with things that could be risky or lead to legal trouble, you might want to consider getting insurance. Some businesses might need to consider financing from outside sources for specific projects or goals. You will also want to keep up with your taxes.

How We Can Help

A Nevada general partnership is an easy way to get your business started, but it might not be suitable for everyone. Other entities, such as LLCs and corporations, offer more protection from personal responsibility for your business’s debts and liabilities. If you want to form either entity, we can help you. We also offer a wide range of additional services to support your endeavor, including Worry-Free compliance.

If you’re looking to form a business with greater liability protection than that afforded by a general partnership, we offer services to help you form a Nevada LLC or a Nevada corporation.