Idaho Statement of Partnership Authority
This form of an Idaho business entity is easier to maintain than an Idaho corporation, but not by much, and has all of its owners personally liable for the business liability. This is a common venture for friends or family that has an idea and doesn’t want to get too involved with it until it becomes viable. Even in the beginning stages, it is important to reserve your name by filling out the proper paperwork with the Idaho, to protect your time and efforts. Often, we can provide you the same benefits of a partnership, but legally reserve your name, and enter you and your partner into a legal agreement by forming you an Idaho LLC. Idaho LLCs have members and you can have different membership percentages of ownership completely however you would like it.
If you’re going to form an Idaho partnership, you NEED to follow some formalities. Most Idaho partnerships are between friends, family, or acquaintances, which makes it even more important to get the details out in the open and down on paper to help keep your relationships at the level they were before you start your business.
The following formalities should be taken:
- Decide how decisions will be made.
- Decide how profits will be shared, and what profits will be put back into the business.
- Decide how disputes will be resolved.
- Decide how future partners will be added.
- Decide how partners will exit and be bought out, if they want.
- Decide how the time needed to run the partnership will be divided among the partners and how they will be compensated
This should all be written down on a formal agreement between partners, along with any other information deemed necessary.
Once your business is going, or even before you start you should consider forming a limited liability partnership, an Idaho LLC, or some form of Idaho corporation to limit the liability of the partner’s personal assets.
The following are some of the forms you will need with the IRS:
- 1065: Partnership return of income
- 1065 K-1: Partners share of income, credit, deduction
- 4562: Depreciation
- 1040: Individual income tax return
- Schedule E: Supplemental income and loss
- Schedule SE: Self-employment tax
- 1040-ES: Estimated tax for individuals