Today's Question"We are a very small business. Do we still need a Partnership Agreement?"Chris Reich provides business partnership advice.YES! Here's Why You Do Even the best of friendships break down. When friends get into business together, they never expect that...
50/50 partners split the profits 50/50. It is possible to have an agreement that specifies a different formula as long as you have a signed agreement.
You and your partner have decided that you no longer want to continue in business together. You have decided to dissolve the LLC but you want to continue in the same line of business using the infrastructure from the business you are closing. That can be simple but there needs to be a few steps taken to avoid liability.
“My partner put up $10,000 and I worked for a year getting the business going. I always thought we were equal partners. My partner says sweat equity isn’t worth the same as real money. Is that true?”