Every now and then someone will go out and start a business on their own, but in most cases it takes the efforts of more than a single person for a business plan to make the jump from idea to reality. Plan ahead with partnership agreements when entering a business endeavour with another person. When the dream of owning and operating your own business is looking more and more like a reality it’s time to have a frank conversation with your businesses partner or partners.
Division of Duties
Things work better when they are totally fleshed out and down on paper. This goes double for business responsibilities. A lax attitude towards who does what can quickly devolve into finger pointing when vital work functions aren’t being handled. Division of responsibilities and division of powers are necessary to make sure no one is working past capacity and that each partner has a say in the actions of the business.
Adding or Losing Partners
A business that’s been around long enough will eventually have to deal with adding or losing a partner. Whether it be expansion, retirement, or moving to a new opportunity, changes in the amount or roles of partners comes with some amount of difficulty. Does a partner retain their share of the profits if they retire? Will a new partner receive an equal share in the profits as the other partners? This concept will be discussed briefly in our next blog.
A written partnership agreement, drafted by an attorney, can help clear up and avoid any potential issues. Who runs the company, what is the scope of their power, how do profits and losses get distributed are key elements of these documents, but there are other details an attorney will be able to identify and incorporate into a written agreement for all the partners.
Need Help with Partnership Agreements … Contact The Law Offices of Kirk Halpin & Associates, P.A. Today
Practicing together in Howard County since 2004 – first in Columbia and now in Clarksville, The Law Offices of Kirk Halpin & Associates, P.A., is here to help with a variety of business, real estate and finance law issues. We have a long list of practice areas, a long list of industries served, and a long list of success stories and recommendations in helping businesses, no matter the size, grow, reach their goals, and surpass them. If you’re seeking counsel on a business, real estate or finance law issue, always feel free to contact us via our contact page or call us at (410) 531-1700.