Business Partnership Agreements
When you start a business with another person whether it is a friend, family member, or a colleague it is always crucial that you have a business partnership agreement in place from the beginning. You are legally able to run a business as a partnership without having a business partnership agreement in place but spending the time to have a Lawyer draft a formal business agreement can save you a lot of hardship down the road.
What is a Business Partnership Agreement
This type of agreement or contract if you will is a document that outlines the rules for how you and your partners are going to run your business. It is typical for a business partnership agreement to include things like where you will bank, the responsibilities of all the partners, where the business will do the banking, how much capital each member of the business partnership will contribute to the business, and how the business will be dissolved in the event of bankruptcy.
The cost of having a lawyer draft a business partnership agreement is usually minimal but there are things you can do to reduce the overall cost of having the agreement setup. You should sit down with your partners and create a rough draft of the business partnership agreement before visiting the Lawyer, this will save time as you will have already worked out all the details of the business partnership agreement.