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A well-crafted partnership agreement can address a myriad of potential issues, ensuring that partners are on the same page and conflicts are minimized. Some key issues to consider including in the agreement are: • What happens in the event of a voting deadlock between partners, especially when they both hold equal ownership? The agreement should outline a predetermined method for resolving such situations. • If a partner wishes to bring a new individual into the business, the agreement can specify the process for evaluating and approving or rejecting new partners. • Partners can define the extent to which each is allowed to engage in
other business activities. This includes specifying whether a partner can participate in businesses that directly compete with the established venture.
• Clearly define the expectations regarding the time, effort, and financial contributions that each partner is expected to make to the business. • Establish procedures for resolving disputes, whether through mediation, arbitration, or another agreed-upon method. Engaging an experienced business attorney is crucial in creating a comprehensive partnership agreement. An attorney brings an outsider’s perspective and a wealth of knowledge, having witnessed various patterns and situations in previous partnerships. They assist in crystallizing each partner’s goals and priorities and work collaboratively to create a solution that aligns with those objectives. Taking a proactive approach to anticipate and resolve legal disputes with business partners is a fundamental step in safeguarding the success of a business venture. By establishing a well-drafted partnership agreement with the guidance of an experienced business attorney, partners can navigate potential challenges, mitigate risks, and build a foundation that withstands the test of time. If you’re committed to building your business on a solid foundation, consider reaching out to a business attorney to discuss and strategize on how to keep your partnership strong and resilient.
6770 S. McCarran Blvd, First Floor Reno, NV 89509 775.448.6070 SierraCrestLaw.com
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