You meet someone you like, discuss your ideas and decide to go into business together. So far, it has all been about the two of you. Yet keeping it that way is not wise.
While there are things you might want to keep private between you, getting outside legal help is crucial. Here are some of the reasons why:
You need to know who you are getting into business with
Think about how often intimate personal relationships deteriorate once partners learn more about each other. It is easy to give a great impression at first, yet over time, you will discover a person’s true character.
You cannot afford to do this when a business is at stake. You need to find out all you can before you agree to become partners. It is not just about compatibility, either. Researching each others’ past is also crucial, as if the other person has outstanding legal or financial problems, they could end up affecting you. It is not always easy to find this information, so having help to carry out due diligence is wise.
You need to set out the terms of your partnership
You need to protect the money you will invest if you forge ahead with your partnership. Creating a comprehensive partnership agreement is crucial to this. As it is a legally binding document, it is not something you should do alone.
When you have problems with your partnership
Things can always crop up that strain the relationship. If you cannot resolve them, you may again need legal intervention to do so. That said, getting sound legal guidance from the outset should reduce the chance of this happening.
