New Business Partner? Contracts May Need to Be Updated for Everyone

business partner contracts

If you are the owner or a partner in a business, you may find yourself immersed in daily details. While your true job is to make sure that the clients keep coming in by the droves, you may often feel like you are able to do everything but that. Your team needs you, and you must not only be a great role model to them, but also pay them, offer enticing benefits, make sure everyone is being treated properly, and continue finding good hires as necessary. You must work with vendors—and these could be extremely long-term relationships, so they should stay as positive as possible, always. There may be landlords, real estate to deal with, and so much more.

Aside from having enough capital to maintain your business, the other most important facet to keeping your company successful is how you run it. For many owners, this means bringing in new partners. Perhaps you are bringing in one new partner of your choosing, and someone you know you will get along with – or perhaps there is a new partner joining a group of you. Regardless, business partnership contracts are in order. And while many other aspects of your business may be critical, without a sound contract locked down from the beginning, a legal issue with a partner could be extremely costly to your business.

Upon bringing in a new partner, consider everything anew—and especially if you are restructuring. What will their duties be, along with everyone else’s now? Will there be new titles? What about pay structure and profit disbursements? There should also be clauses regarding any exit strategies, dissolution plans, and more, to include a conflict resolution clause to be put into effect if there is a legal dispute; in fact, this clause can be so detailed that you will know ahead of time whether litigation would be chosen as the mode for resolution, or perhaps mediation or arbitration. Writing new contracts may also be a good time to update other partner’s job descriptions as well as negotiating some financial terms.

Do you need legal assistance with a business dispute? If so, contact the Bolender Law Firm.  Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

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