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The right legal steps when starting a partnership

On Behalf of | Aug 8, 2018 | Firm News

Launching a new business is an exciting time, but it is a legally and financially complex process as well. There are important decisions to make, and one of these choices will be to decide which type of business structure works best for your Nevada company. If you are starting a business with another person, a partnership is likely the most appropriate structure choice.

Partnerships can be profitable and successful, but it is important to lay the necessary legal groundwork for a strong future. One way to do this is by drafting a legally sound partnership agreement. This is an important aspect of the business formation process for your business.

What should be in your agreement?

There are certain things that are important to include in your partnership agreement. This document is part of the foundation of your business, and it is prudent to be thorough, thoughtful and careful as you work on the terms of this important agreement. Consider the inclusion of the following elements as you work on your agreement:

  • An outline of the contributions each partner will make to the business, including in day-to-day operations, financial commitments, how each partner gets paid and more
  • The name of the partnership as agreed upon by both partners
  • The responsibilities of each partner regarding liabilities, debt payments and more
  • How partners will share decision-making authority, as well as how to resolve disputes in the future

Depending on the nature of your business and your potential needs in the future, you may also include procedures for bringing in new partners or what will happen after the death or withdrawal of the other partner.

Without a set list of rules and procedures in place, you could be exposing yourself to an increased risk of problems and complications in the future. When there are issues with partners, it can lead to issues with the bottom line of the company, and a strong agreement can prove quite beneficial.

Addressing your business law concerns

As with any crucial aspect of your business, it is important to take quick action to shield yourself from potential complications and seek experienced guidance before you make important decisions for the future of your company.

If you are starting a business or considering a partnership, you will find it beneficial to think about how you could benefit from drafting a strong partnership agreement as part of the startup process.

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