How to create a successful business partnership

On Behalf of | Apr 1, 2021 | Business Formation |

If you want your business partnership to work in New York, it’s important that you select a partner who shares your same values. You should have the same goals and vision for the business. You also need a track record together to ensure that you know how to handle conflicts and ensure that trust between you is already established.

Making a written agreement

Clearly define each partner’s roles and responsibilities, and get everything in writing to refer back to in the future. This will make it easier for other employees to understand the role of each individual as well.

You’ll also want to create an exit plan if one of the partners eventually wants to part ways with the company. This can prevent tension or conflict from occurring and help make it easier for the business to succeed with the sudden change.

Mistakes to avoid when creating a business partnership

When you’re creating a business partnership, avoid failing to get legal advice; you want to ensure that each partner understands their legal obligations and liabilities. Avoid leaving anything out of the written business contract, which includes the division of income, how business decisions are made and the overall purpose of the business.

When creating an exit strategy, discuss how each partner’s interest will be valued and what occurs to the interest if they become incapacitated. You’ll want to avoid leaving out details like how and when the partner will be paid out once they decide to leave.

Who can you contact for legal assistance?

It’s important to contact an attorney with experience in business law to ensure that you can avoid mistakes while creating a business partnership. A legal professional may inform you of your rights and point out any issues or problems that you might overlook. An attorney in business law may also handle contract issues, litigation, appeals and partnership disputes.