I am amazed at the number of privately held business partnerships that do not have a formal buy-sell agreement in place. This one is absolutely essential. When forming your business, you chose your partner; make sure you have some rights when it comes to who your partner will be as time goes on too.
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There are various types of entities to choose from, all of which have some overlap with one another, but each of which have distinct advantages as well. You will want to determine what business structure fits your company and its vision best.
How to protect yourself and your business startup when the partnership falls apart.
Many founders don’t consider this one until it’s too late. The excitement and adrenaline of getting started leads to a “kumbaya atmosphere” where all things are equal. This spills over into salaries. Sooner or later, the amount of time, effort and energy expended by the partners is no longer equal, but their salaries are. Tensions begin to rise.
The reality of life when it comes to business partnerships, and what’s at stake if your key man is removed from the company.