Be sure to review the previous Mini-Series installment here: How to Choose a Business Entity
When starting a new business with another party, the most common impulse is to split ownership 50/50 with both partners sharing equally in the profits, losses, and management of the company. The most obvious issue with this arrangement is that when the partners hit a disagreement, this can result in a gridlock, paralyze the company’s operations, and jeopardize its sustainability. If the issue cannot be resolved, the only recourse may be to dissolve the business. However, with some careful planning in your internal governance documents, you can set up your 50/50 partnership for success.
Here are the major areas to consider in a 50/50 ownership:
Are you ready to draft your Partnership Agreement but not sure what key language you may be missing? A seasoned business attorney can help you implement solid provisions that address the management, responsibilities, rights, and obligations of the partners. Some business attorneys offer flat fee arrangements and quick turnarounds for this service.
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