If you are thinking of starting a new business with a co-founder, congratulations!
Some of the most successful businesses exist today because of great partnerships. For instance, an incredible 1970s partnership between the late Steve Jobs and Steve Wozniak brought about several of the most popular mobile devices consumers love — the iPhone, iPod, and iPad, produced by Apple Inc.
Indeed, partnership is a strategic move if all parties contribute beneficial resources and share a common vision. However, there are many inherent risks in a partnership arrangement, and for that reason, you must have an iron-clad partnership agreement in place.
What Your Next Partnership Agreement Should Address
Apart from the name of the partnership, the partners’ names, and the place of business, here are six things that every partnership agreement should include:
1. Business Description.
Describe what activity you plan to engage in. Keep in mind that it must be a lawful activity in your state for your agreement to be enforceable.
Specify what date the partnership will begin and when it will end. It’s okay to state that it will end upon termination of the agreement or by some other occurrence.
3. Conflict Resolution.
Inevitably, differences in opinion will arise in any relationship, a business partnership being no exception. Put in writing how you will handle conflicts so that your business can continue despite varying opinions.