Business partnerships are a powerful way to grow your company’s operations and forge your way into new markets. But a successful business partnership needs more than just a handshake to work, even if you and your business partners already trust each other.
Even the most well-aligned business partners need help and guidance in making the best decisions for their venture. The way you set up your partnership’s fundamentals – from partnership formation to profit and loss distribution, dispute resolution, and partnership dissolution – can make or break your business goals.
That’s why our business lawyers put together the Business Partnership Playbook – a guide to all the legal considerations you must make in a business partnership.
Download the FREE Partnership Playbook now.
Nothing beats personalized legal advice from a knowledgeable business attorney who can set up your partnership for the best chance of success. This comprehensive PDF is not legal advice, but it can help you understand what to look out for and how a business lawyer can help. As always, you can contact our business law team at 215-482-0285 or book a call with us now.
The Partnership Playbook addresses the most frequently asked questions about business partnerships and helps break down what makes a successful partnership.
How Do You Form a Successful Business Partnership?First, you must decide if you and your business partner will create a new business entity for your partnership or contract as partners to work on a business project together. Your partnership will function differently based on how you answer that question.
The clearer you are on these questions going into your partnership, the better you’ll be able to orient your efforts to meet your goals, and the more solid your partnership’s foundations will be.
You get a huge advantage from considering important issues ahead of time – before they become problems. A business attorney’s job is to help you anticipate these scenarios that you might not otherwise even think about, saving you time, money, and headache later on.
Equity, Voting Rights, Distributions, Allocations, and Profit/Loss Division in Business PartnershipsLaying out each partner’s roles, responsibilities, and benefits is one of the best ways to avoid running into conflicts and disputes down the line. The Partnership Playbook goes over the following questions and how they can affect your business relationship:
These questions do not have a one-size-fits-all approach. The answers depend heavily on your unique circumstances, goals, and vision. Only a business lawyer can help you set up the best partnership configuration that’s tailored to your specific needs.
Your lawyer can also help you avoid common pitfalls and mistakes that entrepreneurs make when they don’t have the right counsel and advice.
For example, you may think the most sensical way to split a partnership between two partners would be 50-50 down the middle, with equal voting rights for equal or similar contributions. But a 50-50 split on decision-making can easily lead to stalemates that can stall or even dissolve the partnership. Instead, splitting power 51-49 between partners gives final decision-making power to one partner, allowing the partnership to continue functioning even when partners cannot agree.
Disputes, Critical Developments, and Partnership DissolutionsEven with the best planning and risk assessment, partnership disputes happen. Lives and circumstances change, leading to critical developments for the partnership. The better prepared you are to handle these curveballs, the better your partnership is bound to fare. In other cases, partnerships naturally dissolve when the business venture is complete – hopefully as a success.
When you work with a business lawyer, they can help you lay the groundwork for how disputes and critical developments are handled in your partnership.
The Partnership Playbook covers common scenarios and questions, such as:
The right knowledge and advice can make a world of difference to how a business partnership will fare. The Partnership Playbook will help you better understand the strategies that make partnerships more likely to turn their visions into reality.
Download the FREE Partnership Playbook now.
Still, you need a personal approach to the unique needs of your business.
To get started, contact our business law team at 215-482-0285 or book a call with us now.
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?
I get questions about forming a partnership all the time. Even if the legal structure is a Limited Liability Company (LLC), the members will create an Operating Agreement, which is the agreement among the members as to how they will run the business. This agreement is absolutely critical, and needs to have a number of important terms in it.
In this video, I explain how to set up a business with a partner and important terms to include. Going into business with a partner? Considering bringing on a new partner in your business? How do you write a partnership agreement? Watch my video to get some basic information, and if you need assistance with a partnership agreement, please book a call with my team here.
Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.
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