When someone starts a business in Orange County and the surrounding area, one consideration is whether or not to bring on a partner. While there can be benefits to having someone with whom to run a business, a partnership is somewhat like a marriage. Each side needs to take steps to ensure protection in the event the partnership breaks up, and there needs to be ongoing communication and trust throughout the time together.
According to Entrepreneur, there are a number of things the potential partners should do before even saying yes to forming a partnership. One is to perform, basically, a background check. Check references and speak with former employers, clients and partners. Check out social media accounts and perform an online search.
Make sure the planned business formation will protect personal income and assets. There should also be a discussion about what to do if one partner wants out, there is a death or if one does not pull his or her weight. All of this should be in a partnership agreement. This contract should include all aspects of running a business, including:
- The company’s goals
- The ownership percentage of each partner
- Everyday responsibilities of each partner
- Dispute resolution strategies
Both an accountant and a lawyer should review the contract and the payment agreements.
According to Forbes, consistent communication is important once the partnership begins. There should be daily discussions as well as weekly meetings to make sure the business is on track. Both partners should be able to bring up challenging topics and unresolved issues before they become a bigger problem.