Since half of all marriages in the US end in divorce, should it really be a surprise that business partnerships often do not work out? There are so many things that can come between business partners, for example:
- One partner may feel that he or she is carrying all of the weight of business operations while the other partner is just reaping the benefits.
- Sometimes one of the partners may move out of state or even to another country, making it impossible to continue having a stake in the company.
- You may have a falling out that is unrelated to the business. For example, two relatives or friends who go into business together may have a personal problem that ends the friendship. Having to work together may not be possible.
- There are also creative differences if both of you see the business going in a different direction in the future. For example, you may just want to make enough money to take care of your family while your partner wants you to work day and night to turn the small business into an international corporation.
When these and other issues arise, the partnership agreement will dictate how to proceed. It should outline how to dissolve the business or how to reorganize it for one partner to take over and the other to gracefully exit. Regardless of the desired outcome, how smooth things will go depends on the initial agreement.
Business Partnership Agreements in Southern California
If you are going into business with someone else in Southern California, contact Pokala Law APC for a professionally drafted business partnership agreement. It may save you a big headache in the future, especially if things don’t go as you planned. Call 1-844-695-1487 to get started, or you can request an appointment from our website.