Are you considering a business partnership, or are you already in an existing one? While this is a popular formation for a small business when there are going to be two co-owners, you have to be prepared, just in case things don’t go as planned. What are some of the most common reasons that a partnership comes to an end?
- Uneven burden of work – If one partner feels like they do most of the work and only get half the profits, it can cause hurt feelings.
- Family move – If one of the partners moves out of the area, they may no longer be able to handle their responsibilities with the company. Since family needs often come before business decisions, this can happen no matter how successful the business has been.
- Falling out – People who go into business together are often friends or family members. A personal falling out may make it impossible to continue working together.
- Creative differences – This is why many bands break up, and it can happen with a business too. If you have different visions for the future of the company, it can be difficult to continue working together toward a common goal that you don’t both believe in.
Preparing Business Contracts and Agreements in California
Really, the reason for considering this list is to understand why it is crucial to have a well-drafted partnership agreement that includes terms for dissolving the partnership if that ever becomes necessary. To get help for your small business, contact Pokala Law APC. We offer the legal services your small business needs in San Diego. Call us today at 1.844.695.1487, or request an appointment online.