| When two or more people decide they want to | | | | determined by law. Business Partners can agree |
| go into business together, it is often agreed to | | | | to share or assign responsibilities and agree how |
| form a business partnership. If you are starting a | | | | they will share profits and losses, etc. |
| business with family or friends, or are looking for | | | | - WHAT DOES A LEGAL PARTNERSHIP |
| partners to help you run the business, forming a | | | | AGREEMENT NEED TO INCLUDE? Creating a |
| Legal Business Partnership is not something be | | | | Partnership Agreement is the most important |
| taken lightly. A partnership is a legally recognized | | | | step you'll take when entering any business |
| business entity that can exist between many | | | | partnership. You will need to make sure you have |
| different people. When these people want to get | | | | as much information in the agreement as possible |
| together and form a business entity, they can | | | | so no-one is left wondering what their |
| draft a Legal Partnership Agreement and decide | | | | responsibilities are. Partnership Agreements need |
| what rules they wish to work under. Here is what | | | | to state the intent for which they are formed, |
| you need to know before you start: | | | | the name of the business, the length the |
| - HOW DO I START A LEGAL BUSINESS | | | | Partnership is proposed to last, and much more. |
| PARTNERSHIP? Forming a partnership is done | | | | - WHAT IF YOU WANT TO LEAVE THE |
| verbally or in writing. Because a partnership is a | | | | PARTNERSHIP? Your Partnership Contract should |
| legally recognized business entity that applies | | | | cover all eventualities, particularly what will happen |
| certain rules, duties and obligations to its | | | | if one or more people want to get out of the |
| members, you should always be sure of the | | | | business. If you've entered a Partnership |
| people you choose to form the Partnership with. | | | | Agreement with other people who want to sell |
| It's one thing to be friends with a person. It's a | | | | the business or shut it down, but you want to |
| completely different matter to form a business | | | | keep going, your Partnership Agreement has to |
| partnership with them and go about making | | | | be clear about how to continue. Partnerships often |
| money. | | | | have partners who differ in their interests and |
| - WHAT DOES A BUSINESS PARTNERSHIP DO? | | | | wishes. And nothing causes more problems than a |
| Put simply, a partnership is an agreement | | | | Partnership Agreement that is silent about how to |
| between 2 or more people who want to go into | | | | handle these differing wishes. |
| business for profit. If you enter an agreement | | | | Starting a new business can be a fun and exciting |
| with another person to do business and make | | | | time. It can also be an anxious and difficult time. If |
| money, you may automatically have formed a | | | | you have made the decision to be business |
| partnership without you knowing it. Whenever you | | | | partners with other people, you owe it to |
| want to make money with other people, you | | | | yourselves to make your Legal Partnership |
| should first lay out the terms and conditions of | | | | Agreement as accurate and clear as possible. |
| the Business Partnership Agreement in writing. | | | | Partners have to be able to rely on one another. |
| You don't want an assumption that went unsaid | | | | They also need to understand how the business is |
| to come back and haunt you later. | | | | meant to work. Leaving a Partnership Agreement |
| - CAN BUSINESS PARTNERS DECIDE WHAT | | | | silent on an important matter is the most |
| THEIR OBLIGATIONS ARE? Yes and no. Although | | | | guaranteed way to see your partnership fail and |
| there is much room to move when drafting | | | | end in less than happy circumstances. |
| Partnership Agreements, some things are pre | | | | |