You and your best friend have been talking about opening a business together for years. You share the same vision, finishing each other’s sentences as you discuss what you want to do and how you see your business growing. Finally, you have the same values and the same goals. What could possibly go wrong? Why spend money reducing a partnership agreement in writing with a business law attorney, when you are on the same page?
Unfortunately, this approach leads to expensive protracted litigation just a few years down the road. For just pennies on the dollar, a well-written partnership agreement could have prevented such litigation. At the Law Office of Todd M. Kurland, P.A., we know an ounce of prevention is worth a pound of cure.
Partnership Agreements Offer Security
Without a written partnership agreement, one partner can sell or transfer their interest in the business to anyone they want. If a partner becomes disabled or dies, the other partners may find themselves in business with the deceased partner’s spouse, their 19-year-old child, or the deceased partner’s parents, who may or may not know anything about the nature of the business you are trying to run. A written partnership, properly drafted, protects all partners from unexpected and undesirable new partners in the future.
Even if you and your friend have agreed on absolutely everything to date about your business, a disagreement is bound to arise sooner or later. A written partnership agreement can provide guidance as to how the dispute will be handled. Mediation is a common way to attempt to resolve disputes, however, mediation is not required in a vacuum. Without a willing partner or a written partnership agreement providing for mediation when disputes arise, you could be facing costly litigation.
Partnership Agreements Anticipate the Very Worst
Imagine going into business with someone, only to discover they don’t share your work ethic. Or imagine, after knee surgery, your partner becomes addicted to opiates, and can no longer function in his job. Or worse, imagine your business doesn’t take off right away, but you’re not ready to shelve the idea. Imagine, however, your business partner takes a paid position at a competitor’s company to bring in a salary. Suddenly, your partner is not contributing to the success of the company, and in some cases, may very well be working against the company’s interests. QA written partnership agreement allows for removal of partners that are no longer contributing to the company.
If You are Going into Business with a Partner
If you are going into business with a partner, you need a written partnership agreement. Contact business law attorney Todd M. Kurland, P.A. for your partnership agreement and business formation needs. Todd M. Kurland is dedicated, experienced, and focusses exclusively on the business law needs of his clients. Call today for a free consultation at (561) 693 – 4514. Let’s discuss your business needs, and how Todd M. Kurland, P.A. can help you, so you can spend your time building your business.