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Dialogue can be tricky to write and, sometimes, tricky to punctuate. A few pointers:

I. It is standard form to give each speaker his or her own line of dialogue.

     "Brad, I’d like you to meet my sister, Joanne,” Jill said as they walked into the room. 
     “It’s nice to meet you, Joanne. Or may I call you Jo?” Brad said.
     “I go by Joanne, but you can call me anything you want,” Joanne answered with an impish grin.

Sometimes this rule can be broken.

     “Quick, grab the rope,” he yelled, but when he turned around, his partner quietly said, “It’s too late.”

II. Other times, a character’s dialogue continues for more than one paragraph. In this case, use an initial quotation mark for each paragraph, and insert a closing mark at the end of the final paragraph.

     Doug said, “Dialogue paragraph one.
     “Dialogue paragraph two.
     “Dialogue paragraph three.”

Now the reader knows that Doug is finished speaking, even though he’s rambled on for three paragraphs…

III. Never use quotation marks in a screenplay, where every line is dialogue.

IV. And, finally, do not use laughed, smiled, or grinned as speech tags. These should be used as separate sentences, as it is impossible to grin or laugh a sentence.

     “Oh, you think you’re so funny.” She grinned. “But you have mustard on your face.”

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