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Important tips to follow when forming a partnership

| Nov 15, 2019 | Business Law |

If you are starting a business in Massachusetts, it’s important to have a plan in place. It can be difficult to start a business on your own, which is why many people elect to enter into a partnership with someone else. A partnership agreement should never be entered into without it first being examined by an experienced business law attorney.

The best way to start a business with a partner is if you and the other person have a track record. The most common way partnerships fail is when the two partners never worked with each other in the past. Having a track record makes it easier to open the agreement since you know how each other operates.

The role of each partner must be clearly defined before moving forward. When there are questions as to what your responsibilities will be or how you factor into the operations of the company, it can lead to serious problems down the road.

Make sure the partnership is organized correctly. This is best done with the help of an attorney. You have a couple of options, and all of them have different advantages. You can create a limited liability partnership, a limited partnership or a general partnership. You also have the option of organizing the partnership as an S or C Corporation.

The tips outlined in today’s post can make life easier on you when entering into a partnership agreement for your new business. Make sure you share the same values as your partner and have an attorney who can examine the agreement to ensure it is fair for both of you.