Business partnerships often start with little planning, which results in frustration and unmet expectations down the line. A carefully drafted partnership agreement can make the difference between a smoothly running business partnership and one that is constantly bogged down by disagreements. A written partnership agreement spells out each party’s obligations, so you can settle conflicts when they arise and prevent major disputes.
Each state, including Ohio, has its own laws governing partnerships. These statutes establish legal rules that govern various aspects of your partnership, unless you draft an agreement that sets different rules. State laws governing partnerships are one-size-fits-all, so it’s best to avoid leaving the terms of your partnership to them. It’s ideal to work with an attorney to draft a partnership agreement stating the rules that apply to your business. An experienced business attorney can make your partnership agreement legally enforceable while ensuring that your interests are protected.
A written agreement allows you to structure your partnership in a way that suits your business. Terms of your partnership that an agreement should establish include each partner’s shares of profits or losses, each partner’s roles and responsibilities, a system for making decisions, and steps to take if one partner leaves. A partnership agreement addresses virtually all possibilities and scenarios.
It’s also important to put in writing how your company will be governed. In some partnerships, the partners decide to split investment and responsibility equally and agree to make major decisions jointly. In other partnerships, a majority or founding partner has ultimate control of the company. Regardless of how you decide to govern your company, it’s crucial that you lay it out clearly in your partnership agreement in order to avoid problems in the future.
Whether you need occasional advice or one-off representation, having an established relationship with an attorney can be extremely valuable. In addition to advising you regarding the legal aspects of forming a partnership, an attorney can help you create an effective partnership agreement. A good partnership agreement can go a long way toward preventing disputes from arising and keeping disputes from escalating between business partners.
Based in Columbus, Ohio and serving clients throughout the state, Jones Law Group handles all kinds of partnership agreements, including general partnerships, limited partnerships, and limited liability partnerships. Once a partnership is no longer an appropriate entity for our clients, we can help them convert it into an LLC or corporation, if appropriate. We also aid clients with the dissolution or sale of partnerships. Our contract attorneys have extensive experience helping individuals set up business partnerships. We pride ourselves on providing practical advice to clients who are forming or investing in partnerships. Call (614) 545-9998 or contact us online to schedule a free initial consultation with our team.
JLG Attorney Rob Flaugher to Speak at Litigation Seminar on 7/31/15
Jones Law Group Attorney Rob Flaugher will be a featured speaker at the National Business Institute litigation CLE seminar “Dirty Litigation Tactics: How to Deal with the “Rambo” Litigator” at the Hilton Garden Inn Columbus Airport on July 31, 2015. For more information go to: http://www.nbi-sems.com/Details.aspx/R-69518ER%7C?ctname=SPKEM
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