What happens if a business partnership fails?
When entering a business partnership it is always wise to have some type of partnership agreement that at the very minimum accomplished 3 things:
3 THINGS YOU BETTER HAVE IN YOUR PARTNERSHIP AGREEMENT.
- How the profit will be shared.
- Who will carry out what responsibilities.
- How to dissolve the partnership if it ends.
A partnership agreement does not have to be done by a lawyer though there surely is no downside of doing that. A simple agreement that addresses the 3 main points above that is signed by all partners and notarized will still stand strong in a dispute.
