By Solovic; Published: February 29, 2012
So you want to go into business with someone. Good for you. Maybe your potential partner is a family member, long-time friend, investor or business associate. Whatever the relationship, the start of a partnership is much like the beginning of a romantic relationship. The parties are euphoric and it may seem as though nothing could go amiss. Time for a strong dose of reality.
Just like every personal relationship has its ups and downs, so do business partnerships. So before you tie the knot (so to speak), you need to enter into what is known as a partnership agreement to protect yourself and your business. Here are some of the common elements that you should include in a partnership agreement, which by the way, must be in writing and signed by all partners. This is not meant to be an all-inclusive list, so consult with your professional advisor.
As I noted earlier, these are some of the key elements that a partnership agreement should include. You and your partner(s) should schedule time to talk about these issues, but it is best to go to a legal professional who can draft the agreement for you. An attorney can help advise you and make sure you have thought about and covered all the necessary elements so you can manage, protect and grow your business venture.