Am I required to file any forms to be a general partnership in California?

Question

I'm starting a new business as a general partnership. On the CA business portal sight it says:

General partnerships may record their partnership agreement at the county level at the County Recorders office in the county where the general partnership is located. They may also register with the State at the Secretary of State's Office. The filing of general partnerships is permissive. The fee for filing a Statement of Partnership Authority with the Secretary of State's Office is $70.00.

In this case, does "permissive" mean optional? The form in question is Statement of Partnership Authority (GP-1). Link here to the CA business portal site:

http://www.sos.ca.gov/business/gp/gp.htm

Thanks!

Answer 1

Yes, in this case "permissive" does mean it's optional (i.e. you are not required by law to do it).  So you may ask, why would anyone spend the money to file their partnership agreement?  The answer is simple - to make the business arrangement a matter of pubic record - to put 3rd parties on notice of the type of business entity they are dealing with.  Many lending institutions in California will not extend credit to such a business until this Statement is filed.