The Importance of Partnership Agreements & Shareholder Agreements
Drafting agreements for business partners
Even if you are starting a business with your best friend, it is best to have a partnership agreement drafted. A business must be founded on more than just a handshake or a verbal contract in order to protect the business and its founders in the future. The partnership agreement lawyers at Kahane Law Office in Calgary, Alberta are able to explain, negotiate and draft partnership agreements. Call today for the partnership protection you need 403-225-8810.
What is a partnership?
A partnership is where two or more individuals and/or companies get together and start a business. Generally it is not a company onto itself. This would be a corporation. It is also usually a ongoing business and not a single venture. A single venture is generally referred to as a joint venture where more than one person or company is involved. Unlike a corporation, a partnership does not have the same standing as a legal entity. It is a group of people and/or corporations that partner up in that business venture.
What Is a Partnership Agreement?
A partnership agreement, as described the Small Business Chronicle, is a legally binding agreement between the owners of the business regarding the ownership and the control of the business. This document will usually detail how much each owner has contributed financially to the business, how profits and liabilities will be distributed and what will happen to the ownership if someone leaves the partnership or passes away.
Why a Partnership Agreement Is Very Important for Business
A start-up business may be running smoothly initially, but it is inevitable that business owners will eventually face some type of dispute. If the ownership is split completely evenly, there may be confusion and frustration as to who has authority over certain areas of the business and who is responsible for taking care of different tasks.
When these types of disputes arise, it is very helpful to have a legally binding document available that will clearly outline each partner’s roles and responsibilities in the business. Of course, partnership agreements also help reduce stress and hardships by detailing exactly how the partnership is to be dissolved, if this is necessary.
The Benefits of Having a Partnership Agreement
Even if your business only has three partners, conflicts and challenges can occur. These agreements help the business to proceed with business as usual with as little disruption as possible. The agreement can explain the procedures to be followed when a partner leaves the partnership and how equal partnership interests can be maintained.
Having a Commercial Partnership Agreement Lawyers Help You Draft Agreements
When you are considering drafting a partnership agreement it is always recommended that you consult with a business lawyer. As these agreements are legally binding and can significantly affect your personal well-being and the success of your organization, you will want to ensure that there are no errors and that the terms are fair. As lawyers who deal with partnerships and different agreements, we see common issues that businesses run into.
Standard form partnership contracts
There is no “good for every situation” agreement. Each one should be drafted for the specific partners, who have specific roles in as specific business or industry. We listen to what your partnership wants to achieve and then draft an agreement that will help you achieve that success.
A partnership agreement attorney familiar with commercial law can guide you through the process. They will confirm that everyone is represented fairly and that your agreement has not left out any important factors. Do not leave your success up to chance.
Partnership Agreement Lawyers in Calgary
The Lawyers at Kahane Law Office in Calgary, Alberta will help with your partnership legal needs. Get your new partnership venture off on the right foot. CONNECT NOW. We can be reached toll-free at 1-877-225-8817 (or 403-225-8810 locally in Calgary, Alberta), or email us directly here.