Forming a Business Partnership
Investigate your potential partner thoroughly, including calling references and reviewing online comments. Formally outline all aspects of your business relationship and partnership structure in a written contract.
Understanding Business Partnerships
A business partnership legally relates two or more individuals or companies through a written agreement. Partners invest money in the business and share profits and losses. Partnerships often must register where they do business.
- Partners share business profits or losses.
- To join a partnership, an individual must contact partners to become a partner by negotiating an agreement outlining each partner’s rights and responsibilities.
Researching a Potential Partner
Key things to research are the person’s background, previous experience, education, finances, and past business management. Ensure your potential partner hasn’t dealt with financial issues that could impact your business.
Adding a Business Partner
Adding a partner is strategic as it can bring new perspectives and skills. Define your company, determine each partner’s responsibilities, and draft an agreement on decisions, finances, and disputes.
Perhaps because of the uncertain business climate, more people are deciding to pool their talents and resources through partnerships. Partners can complement each other’s talents in a new enterprise.