In any type of important endeavor, you need to protect yourself and your interests. When it comes to creating a business partnership, protection is just as important as with any other venture. While you may trust the individual or individuals with whom you have chosen to move forward, you may still want to ensure that everyone remains on the same page.
One of the best ways to make sure this happens is by having actual pages in the form of a partnership agreement. This contract can help everyone involved understand various aspects of the business relationship as well as specific roles and duties each person will have. Additionally, it could help keep disputes at bay or at least give details on how partners should handle conflicts.
When each person understands what his or her duties are, there may be a lesser chance that confusion will result. Understanding roles can also help parties have a clear idea of who will face business and debt liabilities and who will have the ability to make important business decisions, like forming agreements with other parties. If these details are not included in the agreements, some partners who do not have decision-making authority may carry out actions that could harm the company.
You could also use the terms of your partnership contract to come to an agreement on how parties should address disputes. Other options outside litigation exist, and many contracts indicate that arbitration or mediation must be attempted before litigation takes place, if it proves necessary. You may also want to include simpler methods of decision making, such as taking a vote with majority rule when minor conflicts arise.
Of course, even with an agreement in place, the chance exists that you and your partners could face issues that are insurmountable. As a result, it may be in the best interests of yourself and the company to dissolve the partnership. This type of action can have business and personal impacts, so you should consider your options for taking this route in the best manner possible.
Fortunately, from drafting agreements to dissolving partnerships, a legal professional could help you every step of the way. If you are just starting out with your company or feel it is time for a partnership to come to an end, seeking out the guidance of a New Jersey attorney may prove wise.