ATASCADERO, Calif.,
May 9, 2021 /PRNewswire-PRWeb/
-- Business partners play important roles in the success of a
business, including filling key roles, bringing new clients to the
business, keeping the business in balance and on target. As things
change over time, keeping partners happy and the business on track
is an important strategy for business continuity and Adam Daner, the Atascadero attorney from Daner Law Firm has
some important reasons why reviewing partnership agreements is
critical to business success.
The original business agreement most likely defines timelines
for periodic reviews, such as annually, upon written request of one
or more partners, or certain circumstances that trigger a review.
Defining periodic reviews in the original agreement is important,
but there can be other circumstances that warrant a review as
well.
Life changes and sometimes those life changes effect the
business. A serious injury or illness that change a partner's
ability to contribute to the business; a change in a partner's
finances such as winning the lottery, or filing bankruptcy; changes
in the business's profitability; married partners getting divorced
or a partner considering retirement are all circumstances that can
trigger a review of the most recent partnership agreement.
Just as a business is a living and growing entity, successful
partnership agreements serve all parties the best when they are
considered a vital part of the business and all of the partners.
Starting with a solid partnership agreement helps avoid problems in
the future, but the possibility of an unforeseen situation cannot
be discounted.
Starting off with the most thorough partnership agreement as
possible is the best strategy. Starting a new business is
demanding. Getting all of the start-up details under control is
time consuming and a formal partnership agreement often slips down
the "to do" list. After all, you are good friends and trust one
another, right? Even the best of friends can't remember every
detail that was agreed upon over a handshake. As soon as possible,
visit an expert business attorney, such as the Atascadero attorney at Daner Law Firm, and get
the partnership agreement formalized.
Circumstances that may require a partnership review
include:
- A partner is being sued and potentially exposing the business
to liability.
- A partner is getting married or divorced. Does this expose the
business to community property laws?
- A partner wants to sell out. Does the original partnership
agreement address how this transaction is conducted? What are the
other partners' rights of first option? Can the other partners
refuse a partnership offer for an outside party?
- One or more partners disagree with a business decision. What
recourse do the dissenting partners have?
- Adding a new partner may mean reviewing existing partnership
agreements
- Does a change in profitability affect partners and how?
- What is the process for changing the direction of the business?
Who has the final decision to add or drop new products or
services?
- How does acquiring another business affect the partners?
- Partnership agreements protect each partner and the business
but are only one layer of protection. The legal entity of a
business is also important for making sure partners as well as the
business are protected from certain liabilities, are complying with
the IRS and State of California
partnership laws, and many more business details that may be
overlooking in the demands of starting a business.
The best strategy is to get legal advice for partnership
agreements, insurance policies, the best legal entity, and other
matters before launching a new business. When these kinds of
preparations haven't happened, get legal advice as soon as
possible.
The Atascadero attorney,
Adam Daner, has extensive experience
in all matters of business law and can help start a business off on
the right foot, or provide the right advice for guiding an existing
business in the right direction. In practice since 1994,
Adam Daner has focused on business
law, contractual matters, estate planning, construction and real
property and other related legal matters. Mr. Daner advises
businesses and individuals with acquisition negotiations, contract
drafting, leasing, landlord/tenant roles and responsibilities,
licensing requirements and entity formation.
Daner Law Firm
4555 El Camino Rea, Unit J
Atascadero, CA 93422
(805) 464-5003
Media Contact
Scott Brennan, Access Publishing,
(805) 226-9890, scott@accesspublishing.com
SOURCE Daner Law Firm