If you form a business partnership in Pennsylvania, you may be able to take your business much further than you would have if you worked alone. However, it’s also important to make the limits of your partnership clear ahead of time. If you plan for potential legal disputes now, you could avoid a messy business dissolution later.
What should you do when you form a partnership?
When you start the business formation process, you need to separate your inventions, patents and properties and make it clear who owns what. Otherwise, your partner could claim that he or she owns your property later. You could also accidentally overstep your boundaries by trying to use his or her property without his or her knowledge. It’s important to define how you will use your properties when you start the business.
You’ll also have to talk about your business goals. If you plan on running this business indefinitely, you could make plans for death, incapacitation and other possibilities. Otherwise, you and your partner could plan to dissolve the business once you’ve made a certain amount of money. You’ll also have to talk about what you’ll do if the business fails, or you file for bankruptcy.
A business law attorney could talk to you about other details that you should include in your contract. Even if it doesn’t seem important now, a small detail could have a major impact later. The more you plan, the more you’ll increase your chances of running a successful business.
Do you really need a partnership agreement?
If you’re entering a business partnership with a friend or a family member, it may seem safe to assume that he or she wouldn’t take advantage of you. Unfortunately, you have no idea what will happen in the future. A contract could prevent a future betrayal or legal dispute by eliminating the possibility in the first place.