When entering into a partnership it is essential to properly document the terms of agreement amongst the partner’s. Too many businesses and investments fail because of the partners inability to work together or to resolve problems that could have been avoided had they completed a partnership agreement.

You must not just consider the profit and loss percentages and share of ownership but the parties responsibilities and authority to make decisions, how additional funds will be contributed, how deadlock gets resolved, how title to company assets will be held, how a “cash” partner is re-paid their capital, what happens if a partner dies or becomes disabled, etc.