Deciding to go into a partnership can add valuable expertise to a business while also bringing about other beneficial resources to the venture. However, proactive planning is essential to give a partnership the best chance of being successful. As a result, taking the time to draft an effective partnership is critical. Making sure that every aspect of such an arrangement is well thought out can be crucial to resolving possible disputes or confusion that may happen in the future.
Speaking to legal counsel when drafting a partnership agreement can be advantageous for a new business. Since a partnership agreement should hit on so many pivotal issues, having legal assistance on your side can ensure that your interests are safeguarded. An attorney will know how to establish a partnership agreement that protects your legal rights and sets the framework for how your business will run and what obligations and responsibilities each party has.
In California, the resourceful and knowledgeable Los Angeles partnership agreement attorneys at Leiva Law Firm have the experience and know-how when it comes to drafting effective partnership agreements with your interests and goals in mind.
Considerations for a Partnership Agreement
While there can be several benefits to a partnership, shared business risks mean that preparation is important. Some of the considerations individuals entering into a partnership should think about include:
- Defining the stake each partner will have in the business and what their responsibilities will be.
- The details of the business, such as its name and information about the partners, are also important.
- Instructions on how to address disputes.
- Expectations of each partner’s role in the business.
- How much binding authority each partner has
- How profits will be distributed and how losses will be handled.
- Salaries of each partner.
- What to do if death or disability happens.
- Detailing what happens if a business is dissolved.
- How to manage a partner that wants to leave the business.
Each business is different, and so is each partnership agreement. When drafting a partnership agreement, it is necessary to customize it to the individuals involved and to the unique circumstances surrounding a business.
In some cases, it can be helpful to speak with an attorney even before starting negotiations and partnership discussions.
Speak to an Attorney at Leiva Law Firm Today
Establishing a partnership agreement can be a straightforward task, but given how important the document is, taking the right steps on the front end is of the utmost priority. Partnership agreements are the foundation for a business, and due to the nuances involved in putting such an agreement together, there is no one-size-fits-all solution. Consulting with an attorney early on can set the groundwork for productive partnership negotiations in the future that can lead to an effective partnership agreement and a prosperous business endeavor.
Contact the Leiva Law Firm today to learn more about how a California business attorney can help you be successful with your partnership agreement. To schedule a free consultation with an experienced attorney, you are welcome to call (818) 519-4465.
