Starting/Selling a PartnershipHistorically, partnerships began with a simple handshake between two people with common business interests. This is no longer the case, however. In modern times, partnerships require formal business agreements and documents as well as the services of a professional and experienced business lawyer.
Drafting a Business Partnership ContractAt the heart of partnership formation is the business partnership contract. This all-important document clearly expresses all of the details and specifics of the business partnership agreement. This may include the duties and responsibilities of each partner as well as how profits are divided. It will also include standard business specifications such as the formal name of the business, any relevant business licenses and permits, and the signatures of both parties.
Drafting the business partnership contract is not a task you want to undertake on your own. Not only is the task an arduous one, but there are many legal terms and concepts that must be considered. It’s best left to a business attorney experienced in business partnership agreements.
Selling a PartnershipSelling a partnership isn’t always an easy endeavor. Usually, it requires a unanimous vote from all partners. Plus, before any business assets can be sold, a business attorney must carefully review the original partnership agreement for any specified instructions on how to proceed should the partners agree on selling a partnership business. If there are no instructions in the agreement, then state laws will dictate how the sale will be handled.
Other considerations to be made include the valuation of the business partnership and any business assets, how to identify buyers, and the preparation of a purchase agreement.