Partnership Agreements Dictate the Flow and Ownership of Your Business
Starting a business with friends or family may seem like a great idea, but without a carefully drafted agreement that details your arrangement, disputes will naturally develop. Partnering with someone purely for business purposes also comes with its own risks, as you can never trust that another party will keep your position in mind rather than focus solely on their own. To establish a firm foundation for your business and to clarify expectations from the start, a partnership agreement is essential.
Your Long Island business law attorney from Davidow, Davidow, Siegel & Stern is available to consult on your partnership questions. Continue reading to learn more.
Your Partnership Agreement Sets Out the Terms and Conditions of your Partnership
There are many important questions that you must ask when putting together a partnership, including:
- What is the start-up investment amount required of each partner?
- How will the profits and losses of the company be calculated?
- What percentage of profits and/or losses is each partner entitled to and/or responsible for?
- Who is in charge of making important decisions?
- How will disputes among the partners be resolved?
Entering into a business arrangement where you do not have clear answers to these questions is a surefire recipe for disaster. Without a clear partnership agreement to explain what each partner is responsible for and entitled to, disputes can develop and the ongoing operations of your business can be threatened.
Working with a Business Lawyer Ensures Your Partnership Agreement is Enforceable
While you might be under the impression that a handwritten agreement among friends who have decided to enter into a business partnership may be enough to outline your obligations, this is rarely the case. There are specific legal concepts and particular legal language that must be used in contracts for them to be enforceable as written. An experienced attorney by your side during the drafting and negotiations process ensures that your goals are translated into an enforceable partnership agreement that supports your business.
Discuss All Your Business Contracting, Drafting, and Negotiating Needs with a Business Law Attorney
We are capable of advising you beyond the formation period into your operations and through any merger, acquisition, or dissolution actions you might take.
Your business law attorney outside of partnership agreements can provide:
- Operational contracts and agreements
- Transactional contracts and agreements
- Employee contracts
- Mergers and acquisitions
Running a business is no simple feat and requires an extensive understanding of business concepts and related laws and regulations. To ensure that your agreements and contracts align with the goals of your business, it is important to work with an experienced business law attorney from your area.
Explore Partnership Options with a Long Island Business Law Attorney
For support during all aspects of the life of your business, from partnership agreements to licensing and employment contracts, the Long Island business law attorneys from Davidow, Davidow, Siegel & Stern are here to help. Give us a call at (631) 234-3030, or visit our site to schedule a consultation.