I'm 20 and have been working as a cake artist for the last 5 years with my grandma, she let me take over last year because of her arthritis. She didn't give me much except for customers, experience, and a cookbook. I have been working on making this into a real business since she gave it to me. My best friend has partnered with me and we have decided we are going to be co-owners, but we have a lot to do and wanted to know where we should start. We have came up with a name and have reserved it through the government, we just don't know what to do next.Thanks for the help.

Your grandmother gave you a priceless start in working life.

She also gave you a portfolio--all those pictures of cakes. You need to protect those. Scan all the pictures and burn CD's that your grandmother should hang onto.

You should contact your state law society, because they do referrals where you get a half hour of free time. Ask a specific list of questions (get your grandmother to help you) and you can get a lot of advice in that half hour.

Your grandmother must have also given you access to cake equipment.  Make sure you get this written down so that your current partner understands who gets what if you should split.

Apart from that, you need to go online and follow the state regulations. Use google because that is the fastest way to find your state government regulations for home as well as commercial food operations.

customers? well she's given you the best part. IMO. 

you should write a business plan, even if it's a brief one, so that you have some idea of where you are going.

AI recommend talking to someone at your local SCORE chapter to give you free business advice applicable to your area.

http://www.score.org/chapters-map

Since this is a joint venture with your friend, you will want to talk to an attorney and have them draw up an operating agreement both of you are satisfied with for your company, you'll probably want it structured as a multi-member LLC.

Thanks for the advice I have contacted SCORE and I'm just waiting on a reply.

Jason_Kraft is so right!   Get an attorney and use them often.  Have your operating agreement completely hammered out before your start anything with a partner.   An attorney may seem like an unnecessary expense because you are friends, but don't be complacent about it.  Business can change that relationship and an attorney can help keep those changes positive.

I hate to sound like Negative Nellie, but I just recently left a partnership in which my former partner felt an attorney was unnecessary.  I listened to him and I got the raw end of the deal both while I was working there and when I left.  I wouldn't want anyone to make the same stupid mistake I made. 

Thank you I will contact an attorney.