The concept of a business partnership means that two or more parties have decided to work together. An official partnership agreement helps document the details of the partnership. A legally binding partnership requires each partner to be assigned specific tasks and obligations, as well as financial and business planning expectations. To take full advantage of the benefits offered by the partnership, legal documentation should be in place regarding how one of the partners will be handled upon his departure. However, the required precautions must be taken to safeguard everyone involved in the partnership.
Partnership agreements serve a variety of purposes, all of which are aimed at protecting the rights and interests of the individuals involved, as well as the company’s future. It is a strong instrument for prevention and mitigation. It also covers the ways of valuation and settlement of future conflicts or disruptive events that emerge, as well as establishing roles and obligations and a company’s primary objective.
In Texas, partnerships can be of the following types:
- General partnerships (GP),
- Limited partnerships (LP),
- Limited liability partnerships (LLP) and
- Limited liability limited partnerships (LLLP).
Why is hiring an attorney for a partnership agreement important?
You and your partners may not find common ground despite your best efforts, and you may find it hard to figure out how to move forward. An expert company attorney can assess the problem and recommend the best course of action. Mediation or arbitration may be beneficial to you and your partners at all times. Depending on the circumstances and your preferences, the attorney advises you on your options, such as whether you want to withdraw from the partnership, dissolve the relationship, or continue with the same or alternative partners. If you want to avoid litigation, your attorney may go to great lengths to avoid going to court in order to resolve differences. When litigation is the best way to safeguard your interests, the attorney will provide you with honest counsel. There is considerable litigation expertise and can assist you in determining the best course of action for you and your company.