How to Split a Business When There Is No Partnership Agreement
Two people show up in court fighting over the proceeds from the recent cash sale of their small business. Let’s call them Bob and Alice. There is no Partnership Agreement.
Get a Partnership Agreement NOW and Do Not Use a FREE Template
If you do not have a Partnership Agreement with Buy/Sell provisions, you are missing something that could protect you in the future. Don’t wait another day. Call me and get this done.
How to Get Out of a Business Partnership
The 2 big issues related to getting out of a business partnership are getting agreement on the price you desire and protecting you from liability. If there are no executed agreements in place, be very careful with how you proceed in your negotiations. It’s a good idea to get an adviser on board.
Family Business Partnership Problems Are Different
A family business partnership has unique issues that sometimes cannot be fixed. Even the most hostile business partners will listen to reason.
Family Partnerships Need Good Written Documents
If you are starting or are already in a family-owned business, it is very important to define all aspects of the partnership. Be sure to clearly define the distribution of ownership and specify how partners are compensated.
But My Partner Did It!
Is your business partner in charge of the books? What if he doesn’t pay the taxes? You bear equal responsibility whether you know what’s going on or not.