New businesses face lots of risks, no doubt.

One of the best things you can do if you are beginning a business with a partner is to put together a partnership agreement.  This legal document clearly spells out the rights and responsibilities of each partner, which can minimize the chance of a legal dispute down the road.  There are lots of things that can sink a new business, but a lack of clarity concerning job responsibilities or other issues does not have to be one of them.

Each state has a uniform partnership law, but a partnership agreement can provide further specifics.  Here are some of the things that a partnership agreement might address:

• What procedure is in place if one partner wishes to leave or passes on?
• How are profits going to be shared?
• What are each person’s management responsibilities?
• How does each partner contribute to cash flow?
• What is the reach of each partner’s authority?
• How would a new partner be added?
• Which partner holds title to physical property?
• How are salaries computed?

If you have a new business and are interested in a partnership agreement, an experienced attorney can help you draft this legal document.  It could mean the difference between success and failure, between a healthy partnership and a failed friendship.