Common business partnership agreement forms

Common business partnership agreement forms

Lesson Details:
April 27, 2020

Video Transcription: What are they common business partnership agreements like sometimes they're called the buy-sell agreements and what are they how should you set them up this video is brought to you by Appy Pie’s Academy  well any time if you're just an individual operating a business your sole proprietor and then you might become an LLC or corporation or something like that if you're a sole proprietor who's doing the business with somebody else you have a partner by default you have a partnership and you have what's called a general partnership you don't have to do anything to create it if you and I decide that we're gonna start manufacturing kitchen chairs then we're by default partners now that's easy you know it's a lot easier than mean an LLC it has some tax disadvantages but the big problem with it is is when Alex decides he doesn't want to be in the kitchen chair business anymore what happens and that happens all the time and it's not only that people change their mind they move on to other things maybe maybe you feel like I'm not giving enough to the business maybe you think I'm off gallivanting and I don't care enough about kitchen chairs so now we got a problem right yeah maybe I get divorced and so my husband wants to come in and take part of our business yikes you're you don't want to be in business with my husband you've never even met him right yeah maybe I die we have the same problem right now maybe my three kids want to be in business with Alex right maybe I go bankrupt you know what's gonna happen with the business in the Bankruptcy Court maybe the bankruptcy courts gonna sell it to somebody else and that random person is now gonna be in business with Alex so this is the kind of stuff that partnership agreements lay out this is the kind of stuff that we get to decide beforehand and they call on the DS but you know death disability dismemberment disinterest divorce all those things when those things happen what are we gonna do what what is the agreement between you and I at the front end of how this is gonna work are we gonna bail you the business and if I don't care anymore you buy me out are we gonna say that spouses are not going to be stepping in the place and then you could buy could buy my husband out and then you get to continue to operate the business the business is super small it doesn't matter that much and that's why a lot of general partner ships they don't do this at the beginning but if you're operating a real business and you're playing to win and you're building a real business this is the kind of stuff you want in writing before this stuff hits the fan because this is the stuff I mean they say the only ship that won't float is a partnership right this stuff happens all the time you've brought two people together and stuffs just gonna happen in life so that business buy sell or that partnership agreement lays out exactly what's going to happen when each of these things if and when each of these things occurs it's like good fences make good neighbors good partnership agreements make good partners.


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