If you have read my other posts, you know I strongly encourage people who form Partnerships to create a Partnership Agreement. The document must specify how a Partner can leave the Partnership voluntarily while ensuring that the business is protected from two potential disasters: firstly, by avoiding terms that could bankrupt the business, and secondly, by preventing the admission of unplanned Partners.
Here are more things you need to know if you are opening buyout talks with your business partner.
If your business partner ever is violent, call 911 immediately. Yes, even if he missed. You want to document threats of or actual violence.
This might surprise you. Compensation does not have to be equal in a 50-50 partnership. You can, in fact, do anything you want as long as it’s agreeable with your partner or partners. Read on!
When business partnerships go bad, very often someone wants out. That starts one of two possible processes. The business enters Wind Down and begins the process of closing or the partners start discussing a Buyout.
Even when people get along well, having one partner’s relative handling the books just isn’t good policy. There is an inherent conflict of interest.