Apr 17, 2018
The fifth in our 10 episode podcast series of legal issues facing entrepreneurs is “How should I structure my partnership agreement?” Many new companies fail due to the fact that there never was a well written partnership agreement in place that spelled-out the duties and obligations of each partner and cover all issues the “could” arisen in the future. For example:
- Do all partners agree that company decisions are to be unanimous or by a majority vote? This is important and you’ll want to sit down with your partners and think this one through.
- How much equity (ownership) will each partner have in the company?
- Again, sit down with your partners and think about who’s going to be in charge of what? How much work will each partner have and hold them to that work as well. According to that work, make sure you do an “equity split.”
- How will company assets be split upon the event of a dissolution? Think about this. Think about the bigger picture.
Discus all of these issues with your partners making sure you have all of these written down in a partnership agreement. All of these issues and many more must be tackled and addressed in a comprehensive partnership agreement at the outset of forming your partnership.
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Contact the Queen of Business Law
Kelly Bagla,
Esq.
Go Legal
Yourself
GoLegalYourself.com