What You Need to Know About Drafting a Business Partnership Agreement
Our Morgan Law Group attorneys in Florida and California know that starting a business requires a seemingly endless number of documents to ensure your best interests are protected from the start of its operations.
One of the most important parts of starting a business is deciding on its structure, especially when there are partners involved.
A business partnership agreement can help you and each of the other partners understand their roles in the company, each person’s obligations, the overall financial details, how they will make joint decisions, and what to do when a dispute arises within the organization.
Here is what Florida and California business owners need to know before they open their doors.
Choosing a Business Partnership Agreement Structure
When partners are ready to start a business together, they must first choose the company’s business structure, so it reflects their current and future goals.
There are typically three business partnership options:
- General Partnerships: A general partnership refers to a relationship in which all partners contribute to the day-to-day management of the business. The liabilities, contributions, and responsibilities of the partners are often equal unless stated otherwise.
- Limited Partnerships: A limited partnership is typically one involving investments for assets, like real estate. Limited partners can have limited liability, which means they are not liable for business debts that exceed their initial investment. They must also maintain a limited role within the company.
- Joint Ventures: A joint venture is a form of general partnership that remains valid until the completion of a project or a certain period pass. All partners have an equal right to control the business and share in any profits or losses. They also have a fiduciary responsibility to act in the best interests of other members as well as the venture.
Within these arrangements, business owners can decide whether they would like to form a Limited Liability Company (LLC), where the owners can shield themselves from personal liability, but all generally have management roles. Others can choose to form a Limited Liability Partnership (LLP) where all partners have limited liability but can also partake in management activities. While nearly any type of business can choose to form an LLC, LLPs are often used for structuring professional services companies, like law and accounting firms.
Create a Business Partnership Agreement That Removes the Fear of the Unknown
At Morgan Law Group, our Florida and California attorneys help businesses outline the most advantageous business structure that reflects the type of business, number of partners, partnership obligations, and how they will split the profits, debts, and other financial responsibilities.
Business partnership agreements are important to have in place before the business starts operating, so everyone is protected from the start.
We can help. Our Morgan Law Group has easy-to-access business startup and document review packages for all types of partnerships, so you can leave the work to a professional business attorney in Florida or California for a fixed cost, instead of hourly rates.
Allow us to help your company get started on the right foot.
Call Morgan Law Group Attorneys Today to Discuss Your Case
Contact our Morgan Law Group partnership attorneys in Florida or California today at (786) 706-9228 for a free case evaluation. We can help you understand your complete legal rights and options to form a successful business that provides dispute resolution requirements in writing, so everyone within the company is protected with confidence.