Your Business Needs A Well-Written Partnership Agreement
Whether you started a business with a good friend or just another entrepreneur whom you really respect, it may feel like a handshake agreement is good enough to get you through any trouble your business may encounter. But make no mistake: working without a written partnership agreement threatens the longevity of your company, your financial stake in it and even your legal liability.
Even if you and your partner always negotiate in good faith, you will still encounter unexpected changes, disagreements and confusing situations with no clear solution. A well-drafted partnership agreement allows you to plan methods to address issues you are worried about and other issues you may not have even considered before they threaten your business. At Rich Michaelson Magaliff, LLP, our commercial law attorneys are ready to guide you through the process and draft a thorough, legally sound partnership agreement that protects all parties.
What Is Included In A Partnership Agreement?
No document can cover every scenario or contingency. But when it comes to partnership agreements, more detail is always better. The goal is to take the guesswork and uncertainty out of how to respond to the most likely scenarios as well as the worst-case scenarios. Your agreement will typically include details such as:
- Each partner’s duties and management powers
- What percentage of the business each partner owns
- How profits and losses are distributed
- How long the partnership will last
- Under what circumstances the partnership can be terminated
- How disputes need to be resolved (mediation, arbitration, litigation, etc.)
- How and when new partners can be brought in to the agreement
- How to manage partner buyouts and under which conditions these may be mandatory
- Deciding on a managing partner and spelling out the liability of each partner
- The rules that each partner must abide by and the duties he owes other partners (non-compete agreements, avoiding potential conflicts of interest, etc.)
Why You Should Work With A Lawyer
Our business law attorneys will work with you to create a partnership agreement that addresses every aspect of your business and protects what is most important to you. By creating a customized agreement, we can actually help you prevent or minimize the risk of a partnership dispute. And if one does occur, we are prepared to strongly advocate for your interests in and out of the courtroom.
Discuss Your Options With Our Experienced Attorneys
Rich Michaelson Magaliff, LLP is located in Manhattan and serves clients throughout New York City. To learn how we can help you draft a partnership agreement,represent you in a partnership dispute or any other corporate or commercial legal matter, call us at 212.913.9642 or send us an email.