Do I need to fill out a General Partnership form in the state of California?

Question

My sister-in-law and I have started our own business as wedding planners and floral designers. Our business is only a year old but we've already obtained a good clientel. This business is home-based and I was wondering if we need to fill out a General Partnership form. Also, do we need to obtain an employer tax id? Thanks for your help!

Answer 1

I would NEVER form a partnership ... too much risk ... if you get sued, your personal property is at risk. Instead, form an LLC or s-corporation.

Check with a local accountant.

And, yes, you will need a Federal EIN.