As a business owner in Ohio, you understand that it’s often necessary to bring in outside assistance to fulfill a business need. In some cases, this may mean creating partnerships with other individuals or entities who can help your business flourish. If you consider forming a partnership, it’s important to carefully assess what that means and to protect your and your business’s interests.
When establishing a formal business partnership, it’s also important to create a partnership agreement that clearly defines and outlines the roles and responsibilities of all involved parties.
What to include in a partnership agreement
While every business is unique, there are some universal issues that you’ll want to consider when creating a partnership agreement, including:
- Partner contributions – As part of your agreement, you and your prospective partner(s) should define roles and responsibilities with regard to a business’s daily and long-term operations.
- Partner authority – In addition to defining business roles, including terms related to decision-making authority and as well as the types of decisions that warrant the consent of all partners, can reduce conflict and power struggles.
- Management duties – Though you do not need to detail every responsibility in a partnership agreement, you and your partners may wish to include essential duties for running the company and who is responsible for specific managerial duties.
- Introduction/withdrawal of partners – It’s also wise to include terms related to the potential introduction of new partners as well as the withdrawal of current partners.
- Dispute resolution – Because business partners are bound to disagree from time to time, it’s also a good idea to include a dispute resolution plan in your agreement. This plan may require that alternative dispute resolution methods be attempted before any type of litigation.
A partnership agreement should be tailored to address a business’s specific needs and goals. Depending on the particular circumstances involved with your partnership, you may have additional aspects to consider.
Ensure the legality of your agreement
Like many business contracts, partnership agreements can be complicated and, to ensure that an agreement is legally binding, it’s important to seek the advice and assistance of an experienced business and commercial law attorney.