Starting a business with someone else is such an exciting time. It is also an overwhelming time – a time you don’t see your family or friends very much because you are spending every spare second devoted to your new business. However, you are most likely seeing your new business partner every day.
While things between the two of you are going well now, you should know that business partnership disputes do happen – it’s just a matter of time. This is why it is critical to your company’s future and to your own financial future that you set up a detailed partnership agreement now.
Partnership agreements should be set up early in the life of your company, so when a situation arises you will already know ahead of time what the agreement says about the matter. Although it may be hard to imagine that the person you trust so much may also be the same person you may have a disagreement with down the road, it does happen—especially over financial issues.
Common partnership contracts include the following sections:
- Terms and conditions
- Targets and objectives
- Names of all business partners
- Percentage each business partner owns
- Division of the company’s profits
- Profit-sharing
- Buyout agreement
- What happens upon the death of the other
There are more clauses and provisions that could be included in your business contract than the ones mentioned above, and our Houston business lawyers can help make sure your contract contains the language necessary to prevent most legal problems from ever occurring with your business partner and negatively affecting your company’s productivity and profits.
For help drafting your business partnership contract or other business contracts, please call the Voss Law Firm and speak with a knowledgeable Texas commercial litigation attorney at (866) 276-6179 to receive a free, no-obligation legal consultation today. Make sure you request a FREE copy of attorney Bill Voss’ book, Business Disputes – Critical Information for All Business Owners.
