If you are like many entrepreneurs in Texas, you might consider partnering with another person to help get a new venture off the ground. The reasons people enter into partnerships vary and may include increased access to capital, specific industry or market expertise, expanded production capabilities and more. While a partnership may have many positive benefits, it should not be something rushed into.
Many businesses in Texas are started by relatives or married couples. Other businesses may be started by an individual but with the hope that one day the business will be passed on to the founder's children. These situations all require some smart, proactive and strategic planning in order to ensure the business continues to be properly managed.
At the law firm of Palmer & Manuel, PLLC, in Texas, we help many business owners negotiate and draft their numerous contracts. Since contracts represent such a large part of any business, having a good written contract with each of your partners, suppliers, independent contractors and a myriad of others best serves your interests.
Starting a new business often involves significant document preparation, and you may wonder if you can forgo some of the steps involved in the interest of saving time and money. The short-term solution would be to file and prepare only the minimum to begin operations. The long-term advice is to plan and budget for a robust set of documents which clearly describe all interactions between parties.
A partnership agreement is not a requirement to start a new business, but if you are thinking about forming a new business partnership in Texas, or if you have a partnership already established, you should think about drawing one up. According to FindLaw, establishing your own rules by which to govern your business prevents the state from imposing a set of default one-size-fits-all rules upon you. Furthermore, making your own partnership agreement allows each partner to know where he or she stands and what expectations he or she must meet, which may help prevent minor problems from escalating into major disputes.
Entrepreneurs in Texas often need to work with others when getting new ventures off the ground. When considering a partnership, care should be taken to select the right person and to develop a positive and complete partnership agreement.
Business owners in Texas will be dealing with a vast array of hurdles as they progress through their business journey. One potential issue is that of disputes or disagreements among partners, which can occur between anyone for many reasons. The important part is knowing how to handle it.