It is very natural to feel like you don’t need a contract when the other business partner is your family member. However, even some of the closest relationships are strained when going into business. There are several reasons why you should have a partnership contract, even when going into business with your father, other relative, or close friend.
If the business is under financial stress, you and your father need to have a plan of action. This can be spelled out in the partnership agreement. Other areas of concern that the partnership contract can outline include which direction to take the company, as many partners – even family members – do not agree on the path the business is heading.
In addition, you may have business disputes down the line about profit sharing arrangements or other financial issues. What if one of you may wants out of the business? If you don’t spell out how to end your agreement when someone dies or one of you wants to get bought out or sell the company, you will have major disputes down the road. Setting up an agreement ahead of time can help alleviate disputes later on.
Do your relationship with your father a favor and meet with an experienced Texas business attorney for help setting up a business partnership agreement today. Call the Voss Law Firm at (866) 276-6179 for a free consultation and request a freecopy of attorney Bill Voss’s book, Business Disputes – Critical Information for All Business Owners.