A business partnership is just that, a 'business' deal, and is not something you should enter into casually. Just because someone is your best friend or even family, doesn't mean that legal complications and disagreements won't happen. This month, King Law pointed out in its newsletter four points that should be addressed and clarified when forming a business partnership.
- Know what you're responsible for including partnership debt
- Define who has authority to act on behalf of the business (purchasing, vendors, hiring, new investment, etc.)
- Agree on an exit strategy now, don't wait until things are unraveling
- Address potential legal problems with an attorney prior to finalizing the partnership
A partnership may be just the right thing for your business. But its wise to address potential pitfalls and learn the legal ins-and-outs of business partnerships before signing on the dotted line.
King Law, as well as our other law firm members are happy to provide free or minimal-cost consultations. Think of this as business insurance that will protect you and your partner into the future.