Failing to have a partnership agreement in place from the beginning is a fundamental startup error. In the early stages, partners can be loathe to interfere with the thrill of getting off the ground. But it’s better to do it in the beginning when people are on equal footing. As the business gains value, things get touchier.
In addition to specifying roles, there should be a plan for what happens if there are changes among principals or if the business shuts down. People can also quit, relocate, or die, so a buyout clause is a necessity. Talking about these transitions beforehand will save time, money and hurt feelings later.
Call or email Attorney Richard Sypek today to schedule a consultation to discuss the best structure for your new business. 413-642-5276 or [email protected]