Going into partnership with one or more business partners is a common business structure.
Like all relationships though, issues could arise from time to time and it is therefore imperative to have an appropriately drafted Partnership Agreement in place.
Things to think about in your Partnership Agreement:
- performance obligations of each of the partners
- decision making power of the partners
- how income or losses will be distributed
- how the business will be controlled
- capital contributions
- what happens on the death of a partner
- winding up the partnership.