A partnership is a ‘pass through’ business entity that offers many different benefits. While business partners are on the same team, each party also has specific (personal) interests that must be protected. Your partnership agreement serves as the basis for your legal rights in the business. To be truly effective, a partnership agreement should be comprehensive. Among other key issues, it should address:
- The rights and responsibilities of each partner;
- The financial interests of all parties, including compensation and revenue sharing;
- The duration of the partnership;
- Decision-making authority;
- Intellectual property matters, including trade secret protection;
- Dispute resolution; and
- Partnership dissolution and/or withdrawal from the agreement.
At Bennett, Weston, LaJone & Turner, P.C., our Dallas partnership agreement attorneys have the skills and experience that you can count on. We provide top quality, fully personalized legal representation in the negotiation, drafting, review, litigation of partnership agreements and joint venture agreements. To schedule a completely confidential initial consultation with a Texas partnership agreement lawyer, please call our Dallas office or send us a message online.
Reasons for a Partnership Agreement
Business partnerships come in several different forms, including general partnerships, limited partnerships (LPs), limited liability partnerships (LLPs), limited liability limited partnerships (LLLPs), public private partnership, and joint ventures. No matter your relationship with your business partner—whether you are working with a close family member or a relatively unknown start-up company in another industry—a partnership agreement will provide a firm basis for establishing your rights and responsibilities. Some reasons why you pursue a partnership agreement are as follows:
- You are already involved in a partnership, but you do not currently have a written agreement in place;
- You are preparing to form a new business entity with family members, friends, or other trusted professionals; and
- You or your company is planning to enter an ongoing or temporary joint venture with another firm.
A partnership agreement must be properly drafted. Otherwise, it runs the risk of being found partially or wholly unenforceable under Texas law. Our Dallas business partnership attorneys have the skills and expertise to agreements that protect our clients rights and stand up to any legal scrutiny.
Benefits of a Partnership Agreement
In Texas, a partnership is formed when two or more parties associate to carry out “business for profit.” You may enter a partnership without a formal partnership agreement. As the Texas Secretary of State explains, “there is no requirement that the agreement be in writing and no state-filing requirement” to form a general partnership. That being said, entering a business partnership without a professionally drafted partnership agreement is an enormous risk. Here are four key benefits of a partnership agreement:
- Clarity: A partnership agreement helps to clarify the rights and responsibilities of each party. With a well-crafted partnership agreement, each partner will understand their role in the company.
- Efficiency: In many ways, a partnership agreement is a plan. Business partners can often more effectively take advantage of business opportunities when they have a clear structure in place.
- Reduced Conflict: One of the primary benefits of a written partnership agreement is that it reduces the risk of intra-business conflict. Should a conflict arise, a partnership agreement can specify a predetermined process of dispute resolution.
- Legal Protection: In the event that something goes wrong, a partnership agreement confirms your legal rights. It will protect you from liability and ensure that you are in the best position to access dividends, funds, and other assets held by the business.
To get the maximum amount of benefit out of your partnership agreement, it is crucial that you work with an attorney who will put in the time, effort, and attention to detail that you deserve. Our Dallas lawyer for partnership agreements can help. We work closely with our clients to understand their needs and objectives—ensuring that their partnership agreement protects their best interests.
Contact Our Dallas, TX Partnership Agreement Attorneys Today
At Bennett, Weston, LaJone & Turner, P.C., our Texas partnership agreement lawyers provide skilled, personalized, and solutions-focused legal services to business owners and entrepreneurs. With experience negotiating, drafting, and reviewing partnership agreements, we provide comprehensive legal services you can rely on to create and implement an effective contract.
If you have any questions or concerns about partnership agreements, our lawyers are more than happy to help. Contact us today to schedule your confidential, no obligation initial consultation. We provide partnership agreement services in Dallas and throughout the surrounding communities in North Texas, including Fort Worth, Plano, Arlington, Irving, Grapevine, Garland, Denton, and Frisco.