You have reached your goals and are finally ready to join the 5.68 million partnership businesses all ready in existence in the United States. You have carefully researched and found the perfect location, tools, staff, product, website, and partner. Webb and Bordson Law Group, a San Diego business litigation law firm now wants to draw up those ever so important and essential partnership papers for you. You worked too hard not to have all your bases covered for your new business venture. Check out this blog post we wrote about why your business needs an employee handbook.
Why Partnership Agreements?
This infamous and highly effective San Diego business litigation team knows many things can happen to change the dynamics of a partnership as it runs its course. You work too hard to be derailed by any of these events that may cause you to lose your business.
The smart businessman covers all of his or her bases. Just imagine if any of the following happened:
- Death of one member
- Prolonged illness or disability of one partner
- Disagreement or a falling out on the goals of the enterprise by one partner
- The voluntary withdrawal of a partner
- A partner’s divorce effects on the business finances
Any of these issues and many more could seriously impact the business, its finances, and its desired goals and expectations. Do not worry, our business litigation team at Webb and Bordson Law Group is here to help you sort out the necessary paper work. As Bill Gates once said, “Our success has really been based on partnerships from the beginning.” Let us help you have that perfect partnership just like the successful Bill Gates!
Breaking Down Some of The Elements Webb and Bordson Law Group Will Give to You
- A strong definition of Allocation for Profits and Losses: Once the company begins to make a profit or possibly lose a profit due to start-up costs, unexpected glitches, or poor market livelihood, the paperwork for the proper allocation and distribution for these funds should be in place. Do not wait until the good times roll or the bad times march in to suddenly decide who gets what and who is responsible for debits, credits, and losses.
- Percentage Breakdown of Ownership: This is a very important detail. Who invests how much and whom profits from the credits made from the business must be pinpointed exactly. Lost and wasted money can and will create hard feelings. You may have entered this business with your brother-in-law or your best friend, but the money has to be kept by a business like structure framework with no friendship or family elements and/or drama spilling into the percentage breakdown and consequential rewards of the enterprise.
- Decision Making: Who is responsible for the different components of the business and how decisions concerning the business are made is important. What will be your consent, denial, and approval process? Are signatures required? Is there an independent operating split from two or more areas of the business such as billing, marketing, social expenses, product buying, and that type of agenda? It is suggested that these lines are very definite, so that everyone is not dabbling in every aspect of the company. However, the right-hand must know what the left- hand is doing. The San Diego business litigation team will offer you recommended plans, listen to your concerns, and then draw up the perfect allocation and work designation paperwork.
- The Death or Voluntary Departure of a Partner: These events do, sadly, happen. Before they happen, you must have the exact procedures written up legally to protect both or all partners. You have to be realistic. Do not assume you and the families will handle the matter when it happens. This is a business, and we strongly recommend you treat it as such. Having to go to court to take these matters into estate probate could be costly and detrimental to the business.
- Disputes: You hear about court cases all the time resulting from divergent business goals and business woes resulting in one or more unhappy members of the team. If you go to court to settle, who pays for it? What will this do to the framework of the business? Will the business be able to remain working and viable? Will all partners still be a part of the picture? It will be hard to work day in and day out with a person who took you to court. If the situation becomes so bad that one wants to sell his portion of the business; what will it cost; can the remaining partners buy him or her out; can the sale actually be opened to public offerings; how will the current profits and anticipated profits be split and what will be the timeframe for said distribution? Will the split be even, or will you and your partner(s) have to go back to court to determine the settlement amounts? This entire dissolution of partnership could easily breakdown and bankrupt a viable and thriving business. Do not leave these matters unresolved and undocumented.
Let the Litigation Lawyer Handle the Legal Aspects of Your New Partnership
Unless you are a lawyer, the above list is over-whelming. And it is not a complete listing of all you should be concerned with about you partnership. The Business Litigation Team in San Diego, Webb and Bordson, wants to make your life easier by handling all of these components, as well as many other business partnership concerns. We belong to the following fine and distinguished associations:
- American Bar Association
- Fresno County Bar Association
- San Diego County Bar Association
Appellate Court Committee
- North County Bar Association
- California Association of Realtors
- San Diego Association of Realtors
Our law firm of Webb and Bordson will give you a consultation session, you can contact us on line, and we can speak German and Spanish for those utilizing those languages. We have thousands of satisfied customers who are quietly and efficiently running their business without one concern about the partnership paperwork! Join the thousands of satisfied business partner clients today!
466 W. Fallbrook,
Fresno, CA 93711
T: (559) 431-4888
F: (559) 821-4500
San Diego Branch:
10509 Vista Sorrento Pkwy., Suite 430
San Diego, CA 92121
T: (619) 399-7700
F: (619) 819-8400
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