Legal Question in Business Law in Washington

Re: Husband & Wife Partnership

First, I would have to look at the form before I could say for sure, but I suspect the problem is that the agreement includes provisions for what happens to ownership of the interests if the partnership dissolves. Meanwhile, the laws of Washington State that govern community property (marital property in Washington State) may dictate a different outcome. That is just my guess, because I haven't actually seen the form to which you are referring.

While you are structuring your business, are you sure a partnership is the right choice? Under a partnership, you and your husband will be personally liable for all claims against the business, should the business be unable to meet those claims. (Hopes are high at startup, and with luck your business will move robustly forward, but unforeseen things can happen to any of us.) For some things, that won't matter, because landlords and others will often insist that new business owners give a personal guarantee before they will do business with them. But for other matters, there is no point in taking more risks than you already must.

Depending upon what sort of business you are forming, an LLC, an S Corp, or some other entity might be the best idea. While money is often very tight for new business owners, you may save a lot of grief down the road, as well as saving in taxes, if you work with an attorney up front to form the right entity the right way. Many attorneys will understand that you do not need an expensive formation package, and will work with you to keep within your budget.