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Tips for Forming Lasting Partnerships & Avoiding Costly Litigation Matters in Kansas City

According to nationwide statistics, approximately half of all business partnerships fail, often resulting in costly litigation matters, huge monetary losses and other serious issues. For those considering the formation of a partnership, these statistics can be rather disappointing and extremely difficult to reconcile. The good news however, is that proper planning can help prevent your partnership from dissolving and having to face damaging commercial lawsuits down the road. Accordingly, the following are a number of tips you should consider before forming your partnership.

  • Slow and steady wins the race. There is a reason why people say that "Rome was not built in day". These are important words of wisdom when forming partnership. In the beginning of any great union there is excitement, enthusiasm and most important of all-agreement. A partnership that is built to last needs to be the subject of careful planning, which often takes a significant amount of time and effort. Oftentimes, people become so enthralled with their business concept that they forget to create a functional and well executed business plan.
  • Choose your partners wisely: First, make sure that your partners offer a unique talent or service that will add value to your business and also, that they are qualified to help you. Specifically, ask yourself what each partner brings to the table and whether they have the skills necessary to effectively carry on in a long term business relationship. If you determine that each partner is crucial to the success of the business, the next step is to make sure that you know and trust your partners. In essence, you must be able to discuss important business concerns with each partner in an open and honest fashion. This includes being able to advise them that you disagree with their specific approach or plan of action with regard to the partnership. Overall, anyone who makes you feel uncomfortable or who has a questionable reputation should not be considered for partnership.
  • Meet with an Attorney: Once you have identified your partner(s), it is important to meet with an experienced Kansas City business law attorney. A seasoned attorney can help you draft a partnership agreement that fits your business plans and also, help prevent issues that could lead to protracted lawsuits among disassociated partners down the road. An attorney can also advise you as the entity best suited for your partnership and the steps necessary to apply for said entity. Mistakes in this regard could end up costing you a lot of time and energy should your forms contain unnecessary errors. A skilled attorney can help prevent these and other problems that could end up delaying your business operations and negatively affect your profits.
  • Draft and Sign a Partnership Agreement: A well-drafted partnership agreement is critical to any successful partnership. You will need to have an agreement that contains an appropriate exit strategy in case any partner decides to leave so that your business is protected and able to remain in operation. In other words, under certain circumstances, partners who leave a partnership may cause the business to completely dissolve. Moreover, the agreement should also contain provisions as to how decisions and disputes will be resolved among the partners. This is especially critical if there are only two partners and each has an equal say in your partnership's business matters.

If you are looking to form a partnership or are facing a commercial litigation matter, it is crucial to work with a qualified Kansas City commercial litigation attorney to help you. Only a skilled business law attorney can guide you through the process and fully protect your partnership's rights during the pendency of its case. For more information on my commercial litigation and business law services, I invite you to contract my office today at 913-498-1911 to schedule a free consultation.

Tags: Kansas Business Litigation lawyer

This entry was posted on Monday, February 18th, 2013 at 11:41 am and is filed under Partner Disputes. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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