You have most of the details regarding your Georgia-based business worked out. One of the last, and among the most important, is your partnership agreement. Do you know how to create an airtight agreement that protects all parties involved?
If not, Forbes has the insight necessary to ensure everyone is on the same page. Learn how to keep yourself from becoming involved in an unnecessary legal battle.
More than likely, there is a capital contribution involved in the partnership. If so, be sure to spell out the expected contribution in the agreement. Besides including the best-case financial scenario in the contract, be clear on what you plan to do if all contributions are not enough to keep the business up and running. Be wholly honest about the contribution amount, to better engender a sense of trust from the beginning.
How you make decisions
What do you have in mind for the decision-making process? Do you know the best way to handle stalemates? Should you bring in an impartial party when there is not a consensus? Word the agreement so that there is no confusion regarding deciding on everyday and important business matters.
Just like with an employee agreement, break down how salaries work in your partnership agreement. Do you have an estimate for when you expect the business to start making money? Will some partners get more money than others? If so, why? For partners who contributed to help get the business up and running, should they expect some type of reimbursement down the line?
There may come a time when you and your partners cannot agree on how you operate the business. That disagreement may be enough to bring business operations to a complete halt. How will you handle the possibility of your company coming to an end? It is best to start working on exit strategies while everyone is starting to come in.
Make sure you cover all your bases in a partnership agreement. Looking at the situation from every angle can make your life and your business better.