Partnership Agreements

Partnerships offer many benefits. They utilize the resources of, and spread the risk between, two or more business owners. They ensure a smoother transition should one owner no longer be able to run the business, especially if that change is unexpected. Partnerships can also make owning a business more enjoyable because you are sharing the experience with someone else. It is for these reasons partnerships are one of the most common business formations.

Business partnership agreements are intended to address various issues related to a business with more than one person at the helm. The agreement assigns duties and responsibilities so each party knows what is required of them and eliminates confusion as to each partners duties. The agreement also provides how profits will be divided and, in the event of death or disability, how a partner or his or her estate will be compensated. The agreement also serves to minimize damage, should a legal dispute arise.

To successfully operate a business in which more than one person is an owner, a partnership agreement is essential. Creating a valid and effective partnership agreement requires the knowledge and experience of a business law attorney.

Harms & Harrigan, LLP., Business Attorneys in Woodbury, New York Can Help You Create an Effective Partnership Agreement.

Legal assistance when creating a Partnership Agreement is essential. The Partnership Agreement addresses a variety of issues related to your business. Whether you are launching a new business or you want to transition your existing business entity to a partnership, the attorneys at the Long Island law firm of Harms & Harrigan LLP can help.

Often, friends decide to enter into a business partnership with one another. Each assumes there will be smooth sailing, and assumes there is no need for a legal structure or Partnership Agreement to govern the business relationship.

The truth is, the best thing you can do – whether your venture is shared with business associates or friends– is to create a Partnership Agreement. It not only protects the business, it can also protect your existing business or personal relationship.

Harms & Harrigan, LLP.
What Do Partnership Agreements Entail?

Each Partnership Agreement is tailored to suit the needs and priorities of the business and of the partners themselves. In general, partnership documents contain:

  • Identifying information for the business
  • Financial contributions of each partner
  • Each partners’ compensation
  • Banking information
  • Management authority
  • Each Partner’s responsibility to the business
  • Estate and Transition Planning in the event of death or disability.

Partnership Agreements can be altered over time, but doing so also requires the assistance of an experienced attorney.

Harms & Harrigan, LLP, will work with you and your partners to create a Partnership Agreement tailored to your specific business and to you and your partners as individuals.  They are a small law firm, who work directly with their clients.  In essence, you, as the client, become a partner in creating an agreement that works for you, your partners and your business.

To learn more about Partnership Agreements or to schedule a time to speak to someone about creating a Partnership Agreement for your business, contact the attorneys at Harms & Harrigan LLP.

Source: https://www.sba.gov/starting-business/choose-your-business-structure/partnership