If you are starting a business with a partner, protect both of your interests with a written partnership agreement. Partnership agreements should answer the following questions:
- What is each partner’s investment?
- What are the responsibilities and duties of each partner?
- If a partner becomes disabled, how long will he or she get a share of the profits?
- Can the partners have other outside partnership interests?
- What will you do if one partner wants to withdraw?
- How will you restrict partnership-interest transfers?
- Can a partner pledge his or her interest as collateral for a loan?
- Are additional contributions mandatory?
- How will conflicts be resolved?
King Law Firm Attorneys at Law, Inc. is here to help answer any questions and draft partnership agreements that best fit the needs and concerns of the business and its partners. Contact us to discuss whether a partnership is right for you.