Text me at 205-913-7406 for a quick answer to any legal question!
Co-creating business is an exciting venture, full of limitless opportunity. You have an amazing idea and are ready to put your heart (and money) into the company. Before you get swept up in all the excitement though, stop and think. Do you have a plan for the future? No two persons think exactly alike. It is entirely possible you and your partner may wish to part ways someday. Save yourself a great deal of trouble down the road by co-signing a well-written partnership agreement. Co-owning a business won’t always be smooth sailing. If you wish to run a lasting and successful business, both partners should be upfront about their goals for the company.
It might seem cheaper or easier to forgo an operating or partnership agreement, but to function without one would be extremely unwise. Having an attorney prepare your agreement is essential if you wish to safeguard your assets. Using an online template will not suffice if you are ever to debate the agreement in court. You’re going to want a detailed account and an attorney will know exactly what specifics ask. No matter how similar the business partners are, the two are bound to disagree at some point. Clearly established rules will help avoid strife in this instance. If your business strategies differ in the years to come, you should establish a plan to split the company amicably.
Attorneys generally charge a few hundred dollars to write a partnership agreement. To put that in perspective, think of the fees charged in battle for company assets (say in the thousands or millions). It is wise to come to an affable solution upfront concerning a professional split, rather than endure a divisive and costly battle down the road. I assure you, both your bank account and your mental wellbeing will thank you.
At the Reid Law Firm we handle the following areas: LLCs and S-Corps formation, power of attorney, contracts, operating agreements, leases, partnership agreements, general business disputes, and employment agreements. We know first hand the heartache associated with partner disputes. If you'd like to schedule a time to talk, please contact the Reid Law Firm today at 205-913-7406! You can also text us at (205) 913-7406 for a quick answer to any legal question. Chris Reid can be reached by email at chris.reid@reidlawalabama.com. All communication to the Reid Law Firm is protected by attorney client privilege, so any information submitted will be held in confidence. Initial consultations are always free. For a complete list of our practice areas please visit www.reidlawalabama.com.
Our firm practices the following areas of law: wills, trust, and estates, divorce and family, DUI and drug offenses (only first and second time offenses), and car accident cases. We also handle business law, including formation of business entities and drafting contracts. Additionally, I co-host Yellowhammer News every Monday during lunch from 11-12 on 101.1 fm Birmingham (but our show is broadcast throughout most of the state).