Zachary Zawarski is a business attorney located in Bethlehem, Pennsylvania, that has helped several clients start their business by filing an LLC and taking the necessary steps to begin doing business.
Why a Partnership Agreement is Needed
Anyone who goes into business with a partner should absolutely have a Partnership Agreement or Operating Agreement. This agreement is essential so the rights, duties, and obligations of each partner is specifically spelled out to prevent future conflicts and problems between partners.
I have come across several situations where two individuals decide to start a business without a written agreement. As you can foresee, all sorts of disagreements arise such as the need to raise additional capital, whether a new partner should be added, and how distributions should be made.
What a Partnership Agreement Should Address
Several areas of the Partnership Agreement or Operating Agreement should be addressed. The agreement should address each partner’s ownership interest, capital contributions, how business decisions are to be made, when meetings should be held, when distributions should be made, how new partners could be added, how partners could leave, and how the business should be valued when a partner leaves, among other things.
Litigating Partnership Agreements
Although a Partnership Agreement or Operating Agreement will clearly define how the business will be run and how it will function, a partner can always breach the agreement which may require legal action. If you already have an existing Partnership Agreement, but have a partner who is in breach of the agreement, I can help you seek legal relief. You may be entitled to monetary damages, a court order demanding a partner to act in a certain manner, or you could also seek an injunction which is a court order prohibiting certain conduct.
Retaining an Attorney to Draft or Litigate a Partnership Agreement
If you are interested in starting a business with a partner, I would be happy meet with you to draft a complete operating and partnership agreement to meet your needs to ensure that the operation of your business runs smoothly. Feel free to call me at (484) 362-9286 to schedule a consultation. If you also need legal representation to enforce a Partnership Agreement that a partner has breached, you can also call me at (484) 362-9286 to discuss your rights.