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#1566770 - 06/17/11 09:43 PM Partnership with no agreement
GottaLuvIt Offline
Junior Member
Joined: May 2009
Posts: 48
Hello fellow Tennesseans!
Wondering what documentation your insitution requires when you open an account for a partnership that has no partnership agreement???

What are you relying on that shows it is indeed a partnership and, more specifically, who are the beneficial owners of the partnership?

I'd certainly appreciate your feedback!!!

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#1566771 - 06/17/11 09:56 PM Re: Partnership with no agreement GottaLuvIt
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
Typically we require a partnership agreement. For those foolish enough to operate without one, we usually ask for a business license, a TIN/EIN letter form the IRS, and copies of tax return schedules ahowing the partnership name and the partners involved in the business. I want to say that info is on a K-1, but don't quote me (it's been a long time since I've reviewed tax returns). I think there is also a schedule in the business tax return that lists the partners' names.

If they don't have that, their only other option is to open as a sole proprietorship and list the extra people as signers.
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I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1574156 - 07/06/11 01:42 PM Re: Partnership with no agreement Dani York, CRCM
Night Train Offline
Diamond Poster
Night Train
Joined: Sep 2006
Posts: 1,189
Down South
We sometimes have partners [no written agreement] who split the money 50/50 [or however they agreed] and file on their schedule C's.

We have them create a written partnership agreement for banking purposes. It will list the partnership name, address, partners names, who is authorized to open the account, sign on the account, close the account, if they can independently, etc. They both sign the agreement and them provide any other documentation such as business license and EIN.

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