Upon starting a sole proprietorship, there’s excitement and eagerness to establish the business’ good reputation through advertisement and word-of-mouth. As a business owner, having contracts and agreements will protect you from lawsuits and other legal actions. But what if you decide to establish a partnership business? Though most people think a partnership agreement is not necessary, when two or more entrepreneurs are involved it is highly recommended to protect your assets and counter tax penalties.
In the beginning of a partnership, everything seems promising as the owners work out the kinks and get settled into their roles for the company. However, the situation could change as time goes on. For example, the founder may decide to drop his partner due to a disagreement of how to run the business or budgeting issues. If a partnership agreement is not in place, things can quickly go sour as misunderstandings and hurt feelings arise.
Similar to agreements set forth by a sole proprietor, partnership companies need a detailed and complex agreement describing how to handle every aspect of the business. The sections to include in a partnership agreement includes, but not limited to:
- Contact information of partnership.
- Conflict resolution.
- Duration of partnership.
- Business objectives.
- Buy-Sell agreement.
- Partners’ contribution and compensation.
- Work hours.
In addition to drafting a partnership agreement, it is also suggested to have an attorney to help guide you through the process. This is where Attorney Holden Green comes in. The HWG Law Group can help draft a fresh partnership agreement or reshape your current written reconciliation. Attorney Holden Green understands that this is an important step to building a successful partnership and it makes good business sense.
For more information on how the HWG Law Group can help your partnership business, feel free to visit any one of the three offices.