Key Steps to Take When Entering Into a Partnership
If you are considering starting a business partnership, congratulations! Partnerships involve using everyone’s strengths and business resources in order to establish and build a profitable and successful business. These are the key steps to take when entering into a partnership to ensure that your business starts off on the right legal footing.
Make Sure Your Visions are the Same
Before actually establishing a partnership formation legally, you will want to ensure that you have considered whether this partnership will endure challenges, and that you and your partner can succeed in your new business venture. Consider the following questions to ensure that your vision for a successful business is the same.
- Do you work well together?
- Do you have similar work ethics?
- Do you have the ability to share discretionary decision-making authority?
- Do you enjoy collaborative endeavors?
- Do you appreciate other views and opinions in business?
- Do you have the same values as your partner?
- Do you have the same vision for the company for the next year? Five years? 10 years?
- Do you trust this person?
- Is this person a family relative or close friend? If so, if the partnership does not work out, you may lose a valuable personal relationship or cause division in the family in the future.
Consult With an Attorney
No matter how well-intentioned a person is, visiting with an attorney prior to the establishment of a partnership can ensure that all business and financial decisions are discussed so that all parties are on the same page, and everyone is in agreement regarding expectations of all areas of the business. Some of the ways that a business attorney can help your new partnership includes the following:
- Complete Partnership Vision Discussion. Attorneys often sit down with both partners regarding the new business as a whole to discuss everything from how financial obligations will be divided, start-up costs, future expenses, intellectual property, branding, what purchases need to be made, employees, employee benefits, marketing, production and every aspect of the new partnership. These discussions often include one-year, three-year, and 10-year plans. Discussions should occur regarding the solutions to any future business disputes, as well.
- Contracts and Agreements. The establishment of a partnership should include legal documents that are not only required by state and federal law, but also allow the partnership to operate in the most efficient and profitable manner possible. All documents related not only to the establishment of the business but trademarks, employee benefits, employee contracts, non-compete clauses, intellectual property matters, lease agreements, contracts with vendors, and more are necessary to protect your legal rights and ensure that you start your business partnership on the right legal footing.
Contact an Experienced Business Attorney
If you are in the process of starting a business partnership, there are several things you need to consider, as well as key steps you should take to ensure that your new company starts out with the best possible foundation. The lawyers at the Law Office of Kris Mukherji at (858) 442-5747 can help you determine what legal documents you need, and help you answer the questions you have regarding your new partnership.