Legal Question in Business Law in California

You're not going to find a form to become a partnership because it's not a formal business entity. It's akin to being a sole proprietor. All a partnership requires is that you and at least one other person start doing business together with the intent to share profits and losses. You dont file anything with the State of California.

If you'd like to become a 'limited liability" partnership or "limited partnership" (which are formal business entities), those require you to file certain documents with the Secretary of State.

As I understand the question, you are a licensed contractor and want to change the form of business entity for license purposes. You have a two-step process. In the first phase, you need to form a partnership. As to that, Ms. Atkins is more or less correct. I recommend that you and your intended partner(s) have a formal partnership agreement drafted by an attorney or attorneys representing each partner, although it is true a partnership can be formed by oral agreement or even behaving like partners even without an express contract, written or oral.

The other step is getting a new license from the CSLB. They have two kinds of license applications: Original and Original-Exam Waived. The one to use depends upon your prior license status. In Section 2 of the application, you check the box for "partnership." You'll need to provide your partnership's taxpayer identificiation number, which you can obtain on line from the IRS.

You'll also need a new bond.

You need to draft a partnership agreement to avoid problems with your partners and eventual litigation. Contact me directly,

An attorney will say a partnership agreement is needed. If you're a licensed contractor, you will need to file paperwork to put the license under the partnership. Consult with an attorney in your area for specifics.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney