When you first start a company, you can choose from all sorts of business formations, such as a sole proprietorship, a partnership, or even a corporation. If you decide to form a partnership and have a co-owner in the business, there are some important reasons to have the partnership agreement drafted professionally. Here are a few of the essential ones.
- Untimely death – If you pass away suddenly, and this partnership was your family’s main income source, how will you ensure that your spouse and children continue to be well-cared for?
- Lazy partner – Sometimes, a business partner is gung-ho during the start-up process, and then they disappear, letting you do all the work while they keep half the profits. You need to protect yourself, so there are no hard feelings.
- Disagreements – If you are 50/50 partners, how will you make crucial business decisions when the two of you don’t agree on something?
- Moving out of state (or abroad) – While some businesses can be run remotely, what if you or your business partner need to move a long distance and your company requires hands-on activity? You need a plan in place for a buyout or another way to resolve the issue.
Business Formation Law and Contract Drafting in San Diego
Pokala Law APC can help you with the drafting of a partnership agreement, or we can help you to set up your company in another manner with our business formation services. Give us a call today at 1.844.695.1487, or you can request an appointment from our website.