Vernon Business Lawyers with Extensive Experience Drafting Partnership Agreements
Much like a marriage, a business partnership is an extremely complex relationship that requires a careful balance of input, accommodation and compromise between each party. Unlike a marriage, a business partnership typically forms the basis for each party’s career and primary income. Given the significance of the relationship to each partner and their respective livelihoods, a carefully thought out and properly drafted partnership agreement is fundamental to the long-term health and success of any business partnership.
The business lawyers at Cherkowski Marsden LLP in Vernon, are highly knowledgeable and extremely skilled practitioners with over 50 years of combined experience drafting partnership agreements for local, national, and international entities in a wide range of industries.
Our lawyers are particularly adept at anticipating the needs that a sound partnership agreement will need to address. We will work with you to review all aspects of the organization and the goals of each partner in order devise an agreement that effectively addresses and anticipates the current and future needs of the partnership and the business.
Partnership Business Structures
A partnership is a specific form of business structure that allows for multiple principals without the need to incorporate the business. A partnership allows for multiple owners, similar to a corporation while providing the benefit of low start-up costs, tax deductions similar to a sole proprietorship, and minimal reporting requirements.
There are two types of partnerships agreements: general partnerships and limited partnerships.
A general partnership is an ownership model that allows each partner to share equally in both the profits and the management decisions. It is important to note that each partner also has unlimited personal liability for the business, including decisions made by other partners.
A limited partnership is overseen by one general manager, supported by limited partners. The decision-making rights are solely those of the general partner, in conjunction with a larger share of the profits and all of the personal liability. The benefit to the limited partners is that they do not have any personal liability with respect to the business or the decisions of the general partner.
Important Considerations When Drafting a Partnership Agreement
When drafting a partnership agreement, it is important to consider and address all aspect of the business, including:
- The day-to-day operations of the business;
- The decision-making process within the business;
- The method for resolving disputes if and when they arise;
- The specific rights, obligations, and duties of each partner;
- Establishing a prescribed plan if one partner leaves or passes away, or if new partners join the venture; and
- The roles and responsibilities of each individual partner.
A well-designed, custom partnership agreement allows the partners to vary the responsibilities and rights of each partner in a way that works for each individual business, rather than the default structure as set out under the Partnership Act.
Expertly Drafted Partnership Agreements for Businesses of All Sizes
At Cherkowski Marsden LLP we assist business of all sizes and across a variety of industries create customized partnership agreements to suit the unique needs of their venture. Our experience and attention to detail will set your partnership up for long-term success. If you are looking to establish a new partnership or create an agreement for one already in operation, contact us online or at 250-308-0338 to take advantage of our knowledgeable insight and advice.