If you plan on entering into a business partnership with another individual, you will first need to draft a partnership agreement. This is important because a good partnership agreement will cover a lot of bases, and ideally, will see you and your partner through both the good times and the bad.
So, what does that entail? How can you be sure that your partnership agreement will serve you well in the years to come? If your partnership agreement includes these three things, you are well on your way to starting your company.
Clearly defined roles and expectations
The best partners bring different skillsets to the table. Your agreement should detail what is expected of each partner, whether that is a financial investment from a silent partner, day-to-day business management or community outreach.
Will your business ownership be a 50-50 split, or will one partner have a larger piece of the partnership pie? This, too, should be addressed in your partnership agreement.
The decision-making process
When it comes to hiring and firing employees, who gets the final say? What about financial commitments that are made? Having a process and sticking to it can allow both partners autonomy in their own lanes without worrying about stepping on toes.
Ending the partnership
Even the best partnerships need to have an exit strategy in place. How will it be handled if one partner wants out if there is a divorce or a partner dies? While it might not be pleasant to contemplate some of those scenarios, they should be detailed in your partnership agreement.
Legal guidance can produce the most fruitful partnership agreements
Don’t just try to wing it without legal advice. Your Fort Lauderdale business law attorney can draft a solid partnership agreement that allows for many contingencies.