Drafting Business Partner AgreementsA business partnership is a decision made by two parties (either individuals or companies) to practice business together. When you form this type of business arrangement, you need a legal document to make it official. This is where business partnership agreements come in.
Is A Business Partner Agreement Really Necessary?While business partnership agreements aren’t required by the state of California, that doesn’t mean they should be neglected. Entering into an official partnership is a serious decision and one that can have long-term consequences on your finances and success in the business world. Drafting a good partnership agreement that protects your best interests is the wise choice.
What Do Business Partner Operating Agreements Do?Formal business partnership agreements outline the terms and conditions of the partnership. This can include the duration of the partnership, each partner’s fiscal contribution to the business, and ownership shares, for instance. It will also include instructions as to how business decisions should be made as well as how disputes between partners will be resolved.
Do I Need a Lawyer for a Business Partner Agreement?Small business partner agreements are extremely important business documents, so they shouldn’t be drafted in haste. In fact, the wisest move is to have an experienced business attorney draft your agreement for you. In order to do this, the lawyer will need to meet with you and your partner(s) to discuss the specific details of your partnership.
In addition, there are certain legal concepts and terms that need to be included in business partnership agreements that you may not be familiar with. A good business attorney can help ensure that your agreement holds up to the letter of the law. This could become very important should a business dispute arise that requires mediation or even litigation.
How to Choose the Best Business Lawyer to Draft Your Business Partnership AgreementChoosing the right business attorney to draft your partnership agreement is pivotal to ensuring your agreement is legally binding. You’ll want to look for one with several years of experience working within the field of corporate law. Ideally, you’ll find an attorney with direct experience drafting business partner operating agreement.
At Ensberg Law Group, we’ve helped numerous clients across Southern California form their business partnerships and draft their partnership agreements. It would be our pleasure to assist you and your business partners as well. Call us today to set up an appointment for your private legal consultation.