Important Elements Every Business Partnership Agreement Should Address (Part II)
Partnerships can be very beneficial for business as there is a team behind the creation, development and management of the organization. Partnership relationships should be valued and cared for however, and one of the best methods of ensuring its integrity is by creating a business partnership agreement.
While business partnership agreement could be drafted by anyone, an experienced business attorney could help to ensure that your business partnership agreement is not generic, but rather customized to fit your specific business needs. The following are some of the most essential elements that should be included in a strong business partnership agreement.
- Just as it is with anything in life, no amount of preparation will fully cover what is to be expected in a business endeavor. There will always be many facets of a business that could make a business partnership an exciting, thrilling, yet terrifying place to be in. A well thought-out business partnership agreement will cover the best ways to handle unforeseen situations.
- Some examples of unexpected enterprise situations may include, but are not limited to:
- How to handle the death, sudden or not, of a business partner.
- How to handle a business buyout: the expected evaluation process and the separation of the business.
- Retirement or healthcare provisions.
- Business partnership modifications: will it be allowed? Under what circumstances will it be allowed? What will be the process for the changes?
- There are countless of unforeseen situations that a business partnership agreement could and should attempt to cover. If you are having difficulty in preparing a detailed list of scenarios, make sure to cover all of your bases by speaking to an experienced attorney. An attorney with the right experience can help you understand what are the most common business developments in your market.
- Many business are not continuous, therefore, it is essential to cover the steps business partners will take when undergoing a business’ dissolution.
- A business’ dissolution requires that local state law be respected. For a more inclusive understanding of the state’s rules and regulations concerning business dissolution, seek the advice and support of an experienced attorney. A business law attorney will understand the laws concerning your type of business and can help to safeguard that your business dissolution is valid and legal.
The Importance of Crafting a Business Partnership Agreement
With the help of the Internet, you and your business partners can find a multitude of business partnership agreement templates online. These templates can help get you and your partners started and can also help you begin thinking about what you would want your agreement to include. Once you have completed a partnership agreement draft, you should consider speaking to a business partnership lawyer. An attorney with the right background could provide your partnership agreement a modified draft that will serve you and your business. An attorney can also serve to safeguard the agreement’s inclusiveness, thus, minimizing room for disagreements.
Investing Time and Effort
Without a doubt, a business partnership agreement will require an extensive amount of time and effort. It will require that all partners research their desires and formulating an agreement that will suit everyone’s needs. Unfortunately, the more people are involved in a partnership, the more it could become difficult to come together in agreement. Consulting the support of an experienced attorney can help the partnership agreement as it will cover bases that a new business partner will not otherwise be aware of. Another great benefit of seeking legal support is by minimizing the amount of time and money invested in drafting the agreement. Drafting the agreement once and well-thought out can save you and your business partner both money and time.
The attorneys at the Knez Law Group are experienced in the area of business partnerships. If you have entered into a business partnership, it is eminent to understand the essential elements of a business partnership agreement. The attorneys are the Knez Law Group are a dedicated team of attorneys who have successfully represented many clients who have entered into business partnerships.