A business partnership includes more than just one person making all those important decisions. Therefore, it is advisable to have a plan in place to avoid future disagreements and disputes over handling the business that leads to legal problems that a Coachella Valley litigation attorney might handle. Consider the following.
1. Define the business.
Is it an online business? A brick and mortar business? Are you going to sell a service or produce products.
2. Decide the business structure.
It is important to understand that there are different types of partnerships. For example, a general partnership or limited partnership. Make sure all partners agree to the terms before signing any business partnership contracts.
3. Partner’s contributions.
Write up a contract that includes each partner’s contribution. For example, are they contributing startup money, expertise, knowledge?
4. Settling disputes.
Will you call in a third party to handle disagreements over the business or a legal team?
5. Identify profit & loss ratio.
How are profits and losses handled? Will shares in the company handle profits and losses or some other method?
6. Define compensation plans.
How are profits shared by partners? Will they get a salary?
7. What happens if a partner dies?
Will the business continue? What happens to the partners share in the company?
8. Who will handle changes to the partnership?
Will a legal team or mutual agreements take place?
9. Define partnership restrictions.
Who makes final decisions on important money matters?
10. How are the assets distributed after dissolving the partnership?
Decide now, before signing a partnership contract.