Many New York entrepreneurs often have an opportunity to grow their business by forming a partnership with another individual or multiple individuals in certain cases. All business managers are interested in company growth to some level, and partnerships serve as an effective method of reaching the next plateau quickly. However, it is always best to have all responsibilities and obligations for each partner established in writing before beginning operations as duly designated owners.
The written agreement
Depending on the dynamics of the business structure, the operational agreement should state the percentages of ownership and the specific duties of each partner. This working relationship is a vital business law element for any entity even with a standard equal partnership of similar investment level. An effective partnership agreement will give the business a head start from the very beginning in achieving long-term growth goals.
Conflict and dissolution
All businesses deal with internal conflict from time to time when partners do not agree on company direction or some calamity happens that is beyond their control. The operating agreement should include a form of resolution when an in-house decision cannot be reached or someone should need to leave the partnership arrangement. Even addressing what happens to ownership interests in the event of the death of a partner can be included in a well-designed contract that reduces as many questions as possible regarding unforeseen circumstances. These issues can all be addressed when the contract is compiled by an experienced business law professional.
The old adage that failing to plan is planning to fail can surely apply when entering into a business partnership. The most successful operations are the ones where all possibilities are accounted for even before beginning operations.