When two or more people decide to go into business together, it’s important to put in writing the partnership agreement. This document will outline the expectations and responsibilities of each partner, as well as how profits and losses will be distributed. Without an agreement, disputes are likely to arise down the road.
What should I know about this?
So, what exactly should be included in an agreement? Below are some of the essential components:
– The business name and purpose
– The names of the partners
– The percentage of ownership for each partner
– The duration of the partnership
– Roles and responsibilities of each partner
– How decisions will be made
– What happens if a partner wants to leave the partnership
– How profits and losses will be distributed among the partners
– Arbitration or mediation clause in case of disputes
These are just some of the key points that should be addressed in an agreement. It’s best to consult with an attorney to make sure that all your bases are covered and that your interests are protected.
We hope this information has been useful to you.