What To Have In A Partnership Agreement
Legally, you can still create a general partnership agreement with a handshake, but it`s not smart. Like any relationship, partnerships are full of opportunities for disagreement and misunderstanding. But unlike most relationships, once you enter into a partnership agreement with someone, you are legally attached to them until the partnership is officially dissolved. Since more than one person makes decisions and influences results, various aspects of starting and running the business need to be addressed in advance. While not mandatory, I strongly recommend that partnerships have a partnership agreement to describe the ownership and responsibilities of the partners` business. The clearer and more comprehensive the agreement, the less debate or disagreement there is if the partners are not quite on an equal footing. Check with your state`s Secretary of State/Department of Affairs for the requirements of the Partnership Agreement. At Sprintlaw, we have a team of experienced lawyers who can help you create or review your partnership agreement. Contact one of our consultants for a no-obligation discussion on how we can help you set up your partnership agreement and other legal issues with your company. One of the first tasks you and your partners will tick off your to-do list is to make a decision about your company name. The company name may reflect the names of the partners or have a fictitious name. In both cases, your company name must be registered with your state. Let`s say you`ve done a full search for the name you`ve chosen, the registration confirms that no other business with the same name exists, and prevents others from using your name.
Yes, developing a partnership agreement takes time and money, but it`s worth knowing that you and your partners are on the same page and have the same expectations and understanding of how your business works. After several conversations and just a little paperwork, you have a contract that can save you from potential litigation and significant issues in the future. Sometimes the unexpected happens. That`s what makes the company so exciting – and sometimes scary. .