By far, one of the most common mistakes I see business partnerships make with their partnership agreements—after not having one—is taking a “Ron Popeil” approach. The worst thing you can do with your partnership agreement is “set it, and forget it.” Your partnership agreement is a living document. There are regular changes to the tax […]
Your Partnership Agreement Is a Living Document Read More »
Your business, your partners, and your individual requirements are unique. A personalized discussion and tailor-made partnership agreement are needed to give your partnership that best chance for success. A qualified business attorney who has the experience necessary to have a granular and structured conversation with you and your partners should draft your partnership agreement. Additionally,
How to Build a Better Partnership Agreement Read More »
When I work with partners on developing a partnership agreement for their business, I always make sure to hammer home one point: The partnership agreement is meant to help you avoid disputes and litigation at all costs. Why? Because you and your partners won’t always agree. There is an immense cost to litigation for a
How to Avoid Disputes & Litigation with a Partnership Agreement Read More »
The role of a business lawyer and the cost of legal services during the formation process and early stages of a new multi-owner business are perennial concerns for business partners. The owners often don’t see the benefits of paying a couple thousand dollars to draft a partnership agreement that doesn’t appear to bring them any
Can You Afford to NOT Get a Partnership Agreement? Read More »
Update: Coronavirus (COVID-19) In February of 2020, the novel coronavirus began spreading rapidly throughout the world. There has been widespread economic upheaval and uncertainty as businesses around the US reel from the destabilized supply chain, volatile stock markets, and prolonged shelter-in-place orders. The strategies in this piece for weathering an economic recession are more important
Secret Weapons to Recession Proof Your Business Read More »
You’ve heard me say it before: Running a business is hard work. There are a variety of quotidian tasks and issues that business owners will have to handle. Then there are those monumental problems that inevitably crop up from time to time. The best way for business owners to weather these kinds of storms is to
Building Business Relationships to Build Your Business Read More »
Partners in new multi-owner businesses have the option to choose between numerous ownership structures. The most common equity division is the 50-50 partnership. However, this “even split” is not without its pros and cons. Another common structure is the 49-49-2 partnership where a third partner is given a super-minority stake in the business. The 49-49-2
The Pros and Cons of the 49-49-2 (Super-Minority) Partnership Structure Read More »
Partners in new multi-owner businesses all have to tackle the question of equity division. The “established wisdom” about how to divide partner equity is varied and much of it is short sighted. The last thing you want is to do is create long-term resentment because of how this process was done. We’ll dive into the
Dividing Partner Equity to Avoid Resentment Read More »
Much of our work revolves around providing end-to-end legal services to multi-owner businesses, from planning the initial structure of the business partnership and drafting the partnership agreement, through safeguarding the growth of the company, and finally to ensuring a profitable exit strategy. Yet, if I were asked which of those three stages I thought was
Never Set It and Forget It: Three Reasons You Need to Update Your Partnership Agreement Read More »
Companies are always looking for ways to grow. A great way to do this and to ensure that they retain the best and brightest talent is to bring an employee on as a partner (or co-owner) in the business. For employees, it’s an opportunity to move up in the company and take on a more
From Employee to Partner: Three Options to Finance Your New Partner Buy In Read More »
