Because of the nation’s continued poor economic situation and unemployment rate, many people have gone into business with their relatives, close friends or spouses – someone they feel they can trust. Although starting a business with a trusted family member or friend is wonderful, it can actually become awful when times get tough.
Just as with other small and large companies, you will most likely have good times and bad times that are linked to a surplus of profits or a shortfall of funds. This is why it is wise to have a business partnership agreement in place to help avoid business disputes over these common reasons:
- Profits – if one partner doesn’t think the other partner is contributing to the company equally, there may be a business dispute over how the profits should be shared.
- Other financial matters – if one partner has personal financial needs and is taking cash out of the business or wants to invest the company’s profits differently, it can cause a financial dispute.
- Path the business is heading – each partner is going to have different thoughts, ideas and opinions about which direction they want to business to go. Disputes are bound to occur if both partners have different agendas.
- Someone wants out – when one business partner wants to leave the company, it can be complicated and cause a huge dispute if there is no plan in place.
These issues and more need to be addressed carefully in a business partnership agreement so that most of the disputes are minimized. For help drafting a business partnership contract in Texas, call the Voss Law Firm and speak with a trusted Texas business litigation lawyer at (866) 276-6179 in a complimentary consultation. And request your free copy of attorney Bill Voss’ book, Business Disputes – Critical Information for All Business Owners.