Make sure you get it right from the beginning. It will be a small price to pay to make sure you are set up property and have clear agreement of all relevant issues to the running of the business .
Here is a check list for you:-
- Are you trading with the right business set up (sole trader), company LLP or partnership
- Do you and your partner(s) have a clear idea of your roles or more importantly what each other’s roles will be so that you will work effectively and harmoniously.
- Have you sorted out the little things that can cause so many potential problems between partners
ii. Any unusual working hours necessary
iii. Level of Drawings
- Do you have an exit strategy. If any partner needs to leave either through retirement, ill health, death or you simply fall out with one another (yes it happens !!), can remaining partners take on the shares of the outgoing partner. If you take on the others interest in the business , how will it be valued.
Consider in making provision for the above will limit the potential for dispute and will have a positive effect contributing to the smooth running and successes to the new business.
Consult T M Law we specialise in Business Law
This blog post was originally featured on this members own blog.