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6 Key Factors to Consider When Forming a Successful Business Partnership

9/15/2021

A proper partnership agreement makes your new venture real. But the success of your business partnership depends on several intangible key factors that you must consider from the outset.

Sure, your partnership may look great on paper. But how well do you and your partners actually work together? Do your values align? Can you trust each other?

How to Get Out of a Business Partnership

10/17/2017

Just as I get a lot of questions about setting up a business partnership, I always get a ton of questions about getting OUT of a business partnership. Unless business owners have done the right work on the front end, such as setting up a proper Operating Agreement and Buy Sell Agreement, partners may find it more difficult than they anticipated to get out of a bad relationship. In the video below, find out more about getting out of a bad business partnership.

Coming to Terms

7/11/2014

Thinking about going into business with a friend or family member? The first thing you need to do is establish the terms of your relationship.

First, determine who will do what. Is the relationship equal in terms of contributions? Is it equal in terms of who will do the work? Who will make the business decisions? If both partners make decisions, who will break a "tie" if there is a stalemate?

If you will form a LLC for your business, you need to have in place an Operating Agreement. That is the document where you will write down all of these answers and establish all the basics of your relationship. A business relationship is similar to a marriage. In the beginning, everyone is starry eyed and enthusiastic. Over time, resentments may build and damage the relationship. Similar to a prenup, the Operating Agreement will dictate what happens if someone wants out.

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Holmes Business Law, P.C.