What state should I set my partnership up in?

When you are setting up a corporation, the state you choose to incorporate in is a very important decision because the law for corporations has some significant differences from state to state. The same is not generally true for partnerships - state partnership laws are typically standard and uniform. In addition, you can generally override many of the state law’s provisions for how a partnership should be run or controlled by putting different terms into your partnership agreement. As such, the decision about which state you should set your partnership up in is not particularly important, and most partnerships simply organize in the state where all of the partners are located, where the majority of partners are located, where the business’ principle office will be located or where the partnership will do most of its business.