October 14, 2021 | Leave a comment

Include all related information in your partnership agreement. If you decide to start a business with at least one other person, you may want to consider a partnership. Make sure you have a partnership agreement if you choose this business structure. A business partnership agreement is a legal document between two or more business partners that defines the business structure, the responsibilities of each partner, the capital contribution, the ownership of the company, the ownership shares, the decision-making agreements, the process of selling or leaving a business partner and how the other partner(s) share profits and losses. Partnership agreements can include details such as your small business exit strategy, responsibilities, and dispute resolution steps. If you have a partner, you can divide up some of your responsibilities for small business owners, such as. B payroll, bookkeeping, hiring employees and marketing. Decide who will do what and document it. For example, if the partnership dissolves and there are still outstanding debts to suppliers or lenders, these creditors can sue you personally to pay the debt. The company`s debts expose your personal assets to a liability unless you are a limited partner, in which case your liability is limited to the money you invest. To ensure that your business partnership agreement adequately covers each of these areas, closely involve your company`s legal counsel in the development and review of the agreement.