Starting a business in Ohio or elsewhere is a big move. In order to help ease some of the burdens of owning and operating a company, many people choose to go into business with a partner or bring someone else on board after everything is up and running. Having clear goals and expectations for the partnership is key. These can be documented in a partnership contract which is useful to have in the event a dispute arises that requires business litigation or alternative dispute resolution methods to work out.
When it comes to business partnerships, there are three basic types. These are known as limited, joint and, finally, general. If a general or joint venture is entered, each party agrees to splitting roles and responsibilities and also agrees to split any profits and losses. A limited partnership is quite different. This is typically a partnership between one person who will see to the day-to-day operations of running a company and one person who simply invests money in the hope of seeing a return on investment.
Regardless of which type of partnership you are entering into, it is imperative that you have the necessary legal contracts put in place so that all parties involved are protected. It is not uncommon for disagreements to occur or for one partner to fail in his or her responsibilities. When it does, how will you handle it? This is something you can decide long before it happens, and agreeable resolution methods can be included in your partnership contract.
Failing to put proper legal protection in place from the very beginning could come back to bite you. Business litigation, it if is necessary to deal with a soured partnership, can ultimately hurt your bottom line or even result in the loss of your company. An experienced Ohio business law attorney can help you get your partnership off on the right foot and provide further assistance down the line should issues arise that require legal aid. To learn more about partnership contracts and how an attorney can help resolve partnership disputes, please visit our firm’s website.