Going into business with a partner can have a lot of benefits, but it is not without its problems either. Business partners do not always end up getting along, disputes arise, and how those disputes are handled can make or break a company. A partnership agreement is a legally binding contract that business owners in Louisiana can use to keep partnerships running smoothly or help them dissolve smoothly if they are not working out as initially planned.
What might one want to include in a partnership agreement? No detail is too small in such contracts. A good contract will typically have the following information:
- Ownership percentages
- Profit and loss distribution
- Description of powers
- Partnership termination information
- Partner buyout instructions
- Partnership term
- Tax status
This agreement is something that should be created before going into business with anyone. It should cover any and all possible problems that might present themselves over time. That may seem an impossible feat, but with help, all the typical issues seen between business partners can be addressed.
Creating a partnership agreement is not necessarily a difficult thing to do, but it can take time to get it just right. A lot of ground needs to be covered, and contract wording needs to be accurate and detailed as much as possible in order to ensure it will hold up in court. With the assistance of an experienced business law attorney, those wishing to enter business partnerships in the state of Louisiana can do so knowing that they are prepared and protected as they move forward.