What is a Partnership?

A partnership is a contractual agreement between partners that set the terms and conditions of their business relationship. This often includes the percentage of ownership, distribution of profits, and losses. Partnerships outline and clearly define a business relationship and responsibility.

Want to learn more about partnerships and why they are formed? Our partner Fundera has a great guide to partnerships here. 

 

What do I need when applying for a Novo account as a Partnership?

The people that make up your partnership and you may need to have all partners sign the application if they own more than 25% of your business. Generally, we can find these documents online through your state's Secretary of State. However, if we are unable to find them we may follow up by requesting one of the following documents:

• Partnership Agreement

  • A partnership agreement is a contract between individuals in a partnership that sets out the terms and conditions of the relationship between the partners, including Percentages of ownership and distribution of profits and losses. As well as description of management powers and duties of each partner.

• Certificate of Partnership 

  • A legal document filed with the state government to register a limited partnership. These vary by state and each has its own requirements. We recommend that you contact your State Department for more information about your State’s requirements.