It's said only two things are certain, death and taxes. Business partnerships, not so much. They are like marriages so they may last a lifetime or they may break up in less than a year. Though they start with the best of intentions and excitement for the future, they can end in circumstances that are not so positive.
Businesses can't just run on effort alone. They need money to survive and to be invested so the enterprise can grow in the future. Money can be raised in many ways, including going into debt or finding investors. When a partnership is involved there are many issues that can come up when a partner puts money into the business.
If you own or manage a business and have a significant relationship with an individual or another business you should consider documenting that relationship through a contract. As trustworthy as you are and as positive a relationship you may have, protect your company's legal rights and interests with a written, properly executed contract not just a hand shake.
If your business is a partnership you and any other partners share ownership and responsibilities for running your company. Ideally you should have a well drafted partnership agreement that covers any number of potential issues the partners may face. One issue that may or may not be covered is what happens to a partner's interest in case he or she gets divorced.
When you're starting a business partnership, one of the most important documents you should have is a partnership agreement. A partnership agreement is a contract that establishes what your and your business partner's responsibilities, financial stakes, and general roles are in the business. While a partnership agreement is extremely important, many people who are just starting a business decide to use a partnership agreement template they find online. This DIY approach to drafting such an important document increases the likelihood of a partnership dispute arising and could jeopardize your business' long-term survival.