| If you have decided on partnership as the most | | | | partnership agreement. Before putting the agreements |
| favorable form of business for your enterprise, then | | | | in official writing, though make sure that you and your |
| among the first things you have to do is the creation | | | | potential partner have considered these matters and |
| of a partnership agreement that is solid and reliable | | | | discussed them carefully:o Business partnership's name |
| enough. | | | | - depending on your agreement, you could use your |
| Here are important things to remember as you | | | | combined names as official business partnership name |
| conceptualize and make your agreement.o Put your | | | | or register the company with a fictitious business |
| agreement into written form immediately - it is essential | | | | name.o Contributions of each partner - it is significant |
| that you put the in written form all agreements you | | | | that you and your partner establish and record each |
| and your partner have reached regarding | | | | of your contributions for the business before opening it. |
| responsibilities and rights in the business, as quickly as | | | | Set the ownership percentage that each partner is |
| possible. | | | | obliged with.o Profits, draws and losses allocated to |
| Not having a written document of your agreement | | | | each partner - establish the proportions allocated in a |
| may result to you being ill equipped in settling conflicts | | | | partner's percentage interest, other options like regular |
| once they arise. Minor differences of opinion may turn | | | | draws, frequency of distribution of profits, and other |
| into full-blown legal disputes. | | | | important matters.o Authority of each partner - clearing |
| Further, without a written agreement that says | | | | up the issue of binding the partnershipo Decision - |
| otherwise, the state laws that govern your business | | | | making in the partnership - the system you would |
| will have to control a lot of aspects about your | | | | implement so that each partner has equal share in the |
| business. | | | | decision-making process of important matters in the |
| In this sense, you will be able to realize that having a | | | | business.o Management duties - division of tasks |
| written and ratified partnership agreement is a great | | | | between all the partners concernedo Allowing new |
| help for your business. | | | | partners in the business - regarding business expansion |
| - It enables you to build up and organize the relationship | | | | and the procedure of allowing in new partnerso |
| you and your partners would be sharing in such a way | | | | Withdrawal/retraction or death of a partner - make |
| that would be favorable for the business. | | | | regulations in the proper handling of a withdrawing |
| - It gives you a chance to establish the shares in | | | | partner. Setting up a practical buyout scheme that can |
| profits (even losses) that each or every partner may | | | | be offered for the other partners left behind.o |
| would take and the responsibilities of each partner. | | | | Resolving conflicts or disputes - setting up a way |
| - It clarifies issues on what direction the business would | | | | towards resolving disputes especially if there was a |
| take when a partner absconds from his/her part in the | | | | deadlock regarding certain issues |
| business. | | | | Consulting with a business lawyer can be a great help |
| - It enables for other essential guidelines in the business | | | | in creating and finally ratifying an effective partnership |
| to be imposed. | | | | agreement. |
| Here are the most important areas to include in the | | | | |