This is by no means an exhaustive list. Make sure you and your partners consult a professional advisor who can create a partnership agreement for you. A lawyer can also advise you and make sure you`ve thought through and covered all the necessary elements you need to manage, protect and grow your business. Other clauses that could potentially be included in a partnership agreement include: To learn more and get personalized advice on legal issues that are important to you and your new partnership, call us at (866) 237-8129 or contact us online today to speak with our experienced business lawyers. The games are euphoric and it seems like nothing can go wrong – but then something happens. Ugh! No one wants to think about it, but you should. When things get ugly between partners, how are disputes handled? Your partnership agreement should define the resolution process. Should mediation be the first step? Do you need arbitration to resolve disputes? Keep in mind that when a dispute is before the courts, prosecutions are part of the public record. Determining how to deal with disputes will allow you to dismiss speculation as you navigate dissenting opinions.
Each partner has a personal interest in the success of the business. Because of this personal interest, it is generally assumed that each partner has the power to make decisions and enter into agreements on behalf of the company. If this is not the case for your company, the partnership agreement should describe the specific rules of the power granted to each partner and how business decisions are made. To avoid confusion and protect everyone`s interests, you need to discuss, determine and document how business decisions are made. Contrary to popular belief, not all business partnerships work indefinitely. While this practice is common, there are still cases where a business is designed to dissolve after reaching a certain milestone or after a certain number of years. This information must be clearly stated in the agreement. You must have a record of the amount of each partner`s contribution to the partnership before it opens. (People have brief memories.) As a rule, these contributions are used as a basis for ownership share, but this is not a simple formula.
Your agreement should also include steps to be taken to legally end your partnership. You can opt for this if you and your partners can`t agree on the future of your business. Also, research what your state needs to break partnerships. State law governs dissolution and your state`s website must define the process and provide the forms that you must complete. For more information on terminating business partnerships in Georgia, see “My partner wants to leave – now what?” If you have any questions about partnership agreements, talk to an experienced business lawyer. Entering into a partnership agreement can seem like a daunting process, as it`s hard to know what to include and how to formulate it. .