5 partnership agreement terms you must include
Google ‘business partnership’ and you’ll find a multitude of partnership agreement templates that promise to fit the bill for your exciting new business venture. From General Partnership Agreement, to Business Partnership Agreement or even a Partnership Contract. They’re all designed to establish the rights, responsibilities and profit and loss distribution for business partnerships.
Templates are great. But they’re not bespoke and they don’t come with the benefit of experienced legal advice.
That’s why we go a step further for the new businesses we advise on partnership agreements. Instead of simply providing a templated Partnership Contract, we’ll drawn up a legal document which takes into account the nature of your business, the partners involved and suggest bespoke terms to safeguard the partnership and the business long into the future.
As lawyers, we’ve decades of experience encouraging and helping clients to build their businesses. We know that the most important ingredient for success is clarity. Everyone must be totally clear on what the terms of the agreement are, and understand their rights and obligations.
The 5 partnership agreement terms you must include
Two or more of you going into business? Begin by setting out your agreement in writing. To help here’s our guide to the 5 partnership agreement terms you must include:
- Your individual interests in the business
- How profits and losses are to be shared
- The tasks you’ll each have, and how much time you’ll each devote to the business
- The exit strategy. What happens if one of you wants to retire, is incapacitated or dies? How will your shares be dealt with?
- How do you make decisions, what happens if there is a deadlock?
Agree to these simple points before hand and you’ll stand a far better chance of creating a business partnership that runs smoothly and is capable of coping with the inevitable difficulties that may arise.
PARTNERSHIP AGREEMENT CONSULTATION
About TM Law – Specialist Employment Law Solicitor
Based in Hockley, Essex, TM Law is a small and dedicated solicitors. With many years’ experience, helping business owners and local individuals with matters of personal injury, compromise agreements, employment disputes, debt collection, commercial disputes and much more.
As a specialist business law solicitor, TM Laws’ knowledge of the rights and obligations of shareholders, employees and employers is second to none, and their approach is proven to achieve the best results for minimum outlay.
For a personal service, practical advice and quick resolution contact us today. We offer a fair, fixed fee service and we’re always happy to help.