Partnering Only to Dissolve Later? Sometimes It is Better to Go Solo in Business

At one time or another, most of us have had a dream—or still have one—regarding an awesome business idea that we would like to put into place one day. Fantasizing about doing so may be the best part of the process as the nuts and bolts of going into business can be expensive, stressful, and incredibly multi-faceted. No matter what type of industry you are planning on entering, there are so many things to consider, including coming up with a viable service or product, targeted client base, business plan, capital, location, licenses, and more.

A Business Partnership is Like a Marriage in Many Ways

There are many reasons you may be thinking of taking on a partner. For starters, you may have come up with the idea for your business with another person originally. And while there may be loyalty or even intellectual property issues at hand initially, consider whether this is someone you want to embark on a very serious and long-term relationship with in fact, if your business is solid, your partnership could feasibly last the rest of your life. Consider that carefully, almost like you would a marriage. Is this someone you trust implicitly? Do they complement your skills and knowledge? Would you enjoy brainstorming with them and working out the wide variety of issues that arise in business? If so, you may want to proceed forward in creating a partnership, but be sure to consult with an experienced business attorney like Shane Coons first to examine your options.

Consult with Your Attorney Regarding Partnership Contracts

If you move forward, you will need expert legal advice and help in drawing up the appropriate contracts. Such agreements should outline the duties of each partner as well as what they will be paid in salary or profits. There should also be a section discussing what happens if they leave the company and whether there are penalties, how they are compensated upon leaving, and whether any disputes should be resolved with mediation, arbitration, or more traditional litigation.

Consider Whether the Potential Hassle of Having a Partner is Worth It

Many businesses simply cannot be handled by one person alone, and for that reason one or more partners may be necessary. But if you have the skills the capital, the knowledge, and the connections—not to mention the bravery required to act alone—then you may be saving yourself immense headaches later. Like contracts, too many partnerships are created just to be broken later. In going into business solo, you oversee the finances and the total vision for your company. Although there may be others you trust and involve in making decisions, as the sole owner, you can make decisions without having to check with anyone else. And although life throws curveballs at the best of us, without a partner, you are spared having to work around any financial problems or drama that they have in their life. That can pose not only a hassle for you, but can cause challenges within a business too.

A Limited Partnership May Be an Option

If you need help initially, whether for capital or help in getting started, you may be interested in creating a limited partnership where the other party acts in limited capacity, or may only be a partner for a designated time.

Contact Us for Help Now

Do you have questions about drawing up or signing a partnership or other business contract? Are you in the middle of a business dispute and require experienced representation? Call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com. We will be glad to review your case, answer your questions, and help you move forward with success.

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Partnering Only to Dissolve Later? Sometimes It is Better to Go Solo in Business

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