For many in Tennessee, getting married is such an intimidating proposition that they postpone the decision for years before taking the dive. The same may be true for beginning a business partnership. After all, like spouses, business partners must be compatible, work well together and complete each other’s deficiencies. They may also be required to overlook a lot of faults and be willing to speak the truth when it is difficult. When contemplating an intimate aspect of business law like a partnership, there are many questions to consider.
Like the bond of marriage, business partnerships require a great deal of trust. Joining business forces with someone who is not trustworthy or about whom there may be doubts may be asking for trouble. Far from dismissing the feelings as cold feet prior to signing the numerous legal documents, any reservations one has about a partnership should be taken seriously. Business experts say both partners should be equally committed, honest and level-headed about the operation before signing on the dotted line.
Once the business is running, it is natural for an entrepreneur to wonder if the choice of partners was right. Open communication with each other is key to a successful partnership, and bringing any concerns to the attention of one’s partner may be the best way to keep the business running strong. No matter how well the business is going, a partner never knows when circumstances will change and the partnership must end. Having a mutually agreed upon contingency plan, often in the form of a partnership agreement, may prevent things from ending badly.
The incredible amount of documentation and paperwork involved in starting, maintaining and ending a fruitful partnership can be overwhelming and intimidating. However, seeking legal counsel at the earliest stages of planning a business may provide a strong foundation for success. A Tennessee business law attorney can provide guidance and advice for every stage of one’s business venture.
Source: allbusiness.com, “3 Questions to Ask Before Entering Into a Business Partnership,” July 21, 2017