Partnership

A partnership is a single business where two or more people share ownership.

• Because partnerships encompass more than one person in the decision- making process, it’s important to discuss a wide variety of concerns upfront and develop a legal partnership agreement. These may include:

  • Determining the ownership split, e.g., 60/40, 70/30, etc. Every business needs a leader or point person for accountability, thus avoiding the 50/50 split.

  • Including exit strategy terms allowing owners to walk away or be bought out.

  • Agreeing to decisions regarding money, e.g., profit and loss sharing and compensation.
  • Having regular partnership meetings.

• Each partner contributes to all aspects of the business, including money, property, labor, or skill. In return, each partner shares in the profits and losses of the business.