Should You Create Your Own Partnership Agreement?
Drafting your own partnership agreement may be tempting when you are starting a new venture as a way to save money, but the consequences can be significant if there is a disagreement or other conflict in the future. Hiring a Fort Lauderdale business formation attorney is always a smart decision no matter how much you trust your business partner. Even if there are no conflicts in the future, properly planning out your partnership agreement can help to keep your business organized and ensure that the responsibilities of each partner are outlined in detail so that there is no confusion.
Using a cookie cutter agreement can backfire
If you do a quick Google search you probably know that there are dozens of cookie-cutter partnership agreements that you can download and try to customize for your particular business. The problem with many of these agreements is that they don’t cover all of the specifics of your unique venture. You may miss out on important clauses relating to salaries and contributions, death and disability, dissolution and many other potential situations. You’re very limited with any cookie cutter agreement and far better off hiring a Fort Lauderdale business partnership attorney to create a fully customized agreement for you.
Every partnership business is different
No matter how simple your business is, you’ll need to have a custom partnership agreement to guarantee that both partners have a sufficient level of legal protection. A partnership agreement for a restaurant will be substantially different from a partnership agreement for a financial services company or a real estate company, and that means that no template will work for every business.
Your partnership agreement should cover common potential scenarios
There is no agreement template that will cover every potential scenario for your particular business. For instance, one partner may not be able to continue with the venture due to a life circumstance, the company may need to be sold at one point, and the responsibilities of the partners may change as the business grows. Your agreement must be carefully constructed to cover as many of these anticipated scenarios as possible to avoid confusion or conflict in the future.
Each partner offers a unique contribution to the company
Also, the nature of your particular partnership is also unique, with each partner contributing something different to the company based on their abilities, and this must be outlined in the agreement. By working with an experienced Fort Lauderdale business formation lawyer to draft your agreement, you can start your business off the right way and ensure that your agreement covers everything that it needs to.
Contact Mark Schecter at Schecter Law today at (954) 779-7009 for any questions that you may have about partnership agreements or for a consultation.