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Choosing to launch a business with a partner can be one of the most rewarding decisions an entrepreneur makes — or one of the trickiest. While partnerships offer shared resources, skills, and responsibilities, they also require trust, clear communication, and a solid foundation from the start.
At Swoop, we’ve seen firsthand how successful partnerships can help businesses grow faster, scale more sustainably, and build resilience. But we’ve also seen how things can fall apart when critical details are overlooked. That’s why we’ve created this practical, step-by-step starting a business partnership checklist — to help you start strong and stay aligned for the long haul.
Whether you’re teaming up with a longtime colleague, friend, or a new connection with complementary skills, this guide can help you navigate the legal, financial, and operational aspects of setting up a partnership the right way.
What is a partnership?
A business partnership is a formal arrangement where two or more individuals manage and operate a business together. It’s different from hiring employees or working with contractors — it’s a shared ownership model.
In the U.S., there are several common types of partnerships:
- General Partnership (GP): All partners share management duties and liability.
- Limited Partnership (LP): Includes at least one general partner and one limited partner (who typically only invests money and has limited liability).
- Limited Liability Partnership (LLP): Common among professionals (e.g., law firms), offering liability protection for each partner.
- Limited Liability Company (LLC): Not a partnership per se, but often used by two or more co-owners operating a business together, combining liability protection with flexible tax options.
Choosing the right structure depends on how involved each partner will be, what risks you’re willing to take on, and your long-term goals.
How to start a successful partnership
A great partnership doesn’t happen by accident. It’s built, step by step. Here’s how to lay the groundwork for a partnership that’s structured, supportive, and set up for long-term success.
1. Start with the right partner
Let’s start with what might be the most important choice you make: who you’re doing this with. Compatibility isn’t just about friendship or shared interests — it’s about trust, work ethic, and complementary skills. If you’re a strategist, find a builder. If you’re a numbers person, link up with someone who can sell. A partnership works best when your strengths support — not mirror — each other.
You’ll also want to have real conversations early about values, time commitment, risk tolerance, and long-term goals. If one of you sees this as a side hustle and the other is quitting their job to go all-in, that’s a mismatch that needs ironing out before you sign anything.
2. Decide on the type of partnership
Do you want equal ownership? Is one partner investing capital while the other contributes time and labor? Clarify your expectations around:
- Equity shares
- Decision-making power
- Liability exposure
- Tax implications
You might speak with a legal or financial advisor to figure out which structure fits your plans and responsibilities best.
3. Register your partnership name
Once you’ve chosen a structure, you’ll need to pick a name and register your business. This usually involves filing paperwork with your state, securing a federal EIN (Employer Identification Number), and possibly applying for a DBA (“doing business as”) name if you’re operating under a brand different from your registered entity.
If the name you want is taken in your state, or the domain is unavailable, consider alternatives early — it’s easier to pivot before you start marketing.
4. Create a shared mission and vision
You’d be surprised how many partnerships crumble because partners weren’t aligned on where they were headed. Before you get too far into the weeds, talk through why your business exists, what impact you hope to have, and how you’ll define success — both personally and professionally.
Whether you’re bootstrapping a boutique brand or launching a high-growth tech platform, those early shared beliefs will guide big decisions later, especially when priorities shift or challenges arise.
5. Set the tone for your business relationship
This is where reality meets the dream. Decide together how you’ll divide the work. Who’s handling day-to-day operations? Who’s managing the books? Will both of you sign contracts and make hiring decisions? Define your roles early, write them down, and revisit them regularly as the business evolves.
It’s also worth talking about how you’ll handle more personal dynamics: vacation time, time off, working hours, and how you want to manage accountability. That way, no one’s guessing — or stewing in silence — if expectations aren’t met.
6. Check the communication
Some people prefer texting. Others want weekly Zoom calls. Whatever your style, the key is consistency and transparency. Make time for structured check-ins — whether it’s a Monday morning status call or a monthly strategy session. Keep each other in the loop, and if issues bubble up, talk about them early.
Partnerships break down when problems get ignored. Set the tone that open, respectful dialogue is part of the job, not an afterthought.
7. Regularly plan together
Once your business is up and running, the day-to-day hustle can crowd out long-term thinking. That’s why it’s important to make space for planning together. Revisit your goals quarterly. Track your progress, review your finances, and adjust your game plan if things change (and they probably will).
Planning doesn’t have to be formal, but it should be intentional. If one partner is steering the ship while the other isn’t checking the map, it’s easy to drift off course.
8. Create clearly defined job roles
You don’t want to step on each other’s toes, but you also don’t want tasks falling through the cracks. Early on, define your responsibilities in plain terms. Maybe one of you handles vendor relationships while the other oversees marketing and customer service.
But leave room for those roles to evolve. As you grow, you’ll likely hire new team members or shift your focus. Revisit your duties at key moments — after new hires, big contracts, or quarterly reviews — and make adjustments to keep things clear.
9. Have a solid legal agreement in place
Even if you’re going into business with your spouse, your sibling, or your best friend, a formal agreement is non-negotiable. This document should lay out:
- How decisions get made
- Who owns what share of the business
- How profits and losses are distributed
- What happens if one partner wants out
- How you’ll handle disputes
- Succession planning, buyouts, or unexpected exits (including death or disability)
You’ll want to have this reviewed by a qualified attorney. It’s not just about protecting yourself — it’s about preserving the relationship, too.
10. Get business licenses and permits
Depending on what your business does — and where — it may need local, state, or federal licenses. This might include a basic business license, a sales tax permit, or industry-specific certifications.
Be proactive here. Operating without the proper paperwork could lead to fines or delays that slow you down before you even get going.
11. Open a business bank account
Keeping your finances clean from day one can save you countless headaches. Open a separate bank account for your business and run all income and expenses through it. Set up accounting software (like QuickBooks or Wave) to track everything, and decide how you’ll handle reimbursements, credit cards, or owner draws.
Not only does this protect your finances, but it can also help you build business credit, which may come in handy later if you need funding.
12. Discuss marketing and advertising
Even if one partner is the marketing pro, you should both have a say in how you present the brand. Talk about your audience, your voice, and what channels you want to focus on. Will you do paid ads? Organic content? Referral campaigns?
Create a basic plan that outlines what success looks like, who’s doing what, and how you’ll track results. You can always tweak it later, but getting aligned up front will save you confusion down the road.
13. Write out an exit strategy
It might feel awkward to discuss, but you should talk about what happens if things change. Maybe one of you wants to sell, step back, or take a break. What are the terms? What’s fair compensation? How much notice is required?
This kind of planning doesn’t mean you expect failure. It means you’re being responsible and respectful of each other’s time, energy, and investment.
How Swoop can help
Starting a business partnership is a bold and exciting move, but it’s also a serious financial commitment. Whether you’re still figuring out your structure or you’re ready to make your first investment, Swoop can help you navigate the path with confidence.
We make it easy to explore tailored funding options, compare lenders, and register your business — all in one platform. And if you’re not sure what kind of financing makes sense for your unique partnership, we’re here to talk it through.
Ready to turn your shared vision into a real business? Then check available business loans with Swoop to get started and see what’s possible when you partner up with us and have the right financial tools behind you.
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