Small Business Partnerships
At the SBDC, we frequently find that partners run into disagreements with each other at one time or another. We strongly recommend a partnership agreement early in the relationship that spells everything out. A good partnership clearly states ownership percentages, how salaries and withdrawals will be handled, what happens when one partner wants out, an agreement on the method they will use to value the business and a succession clause in the case of disability or death.
An article in USA Today proposes that despite the danger of a partnership going awry, many businesses believe that a partnership can be a key to survival. According Brian Headd, an economist at the U.S. Small Business Administration’s Office of Advocacy , “Businesses with multiple owners are more likely to survive longer than sole proprietorships.”
Meet with an SBDC Certified Business Analyst for more information. We have relationships with small business lawyers they make the process easy and complete through our Small Business Resource Network (SBRN).
