Deciding to open a business with a partner can be an exciting endeavor. After years of planning, you may be starting your new enterprise with a friend or relative. It may also be that your partnership is being formed to expand your business operations. Whatever the case, you will want to be sure that your partnership agreement supports your operations and protects your interests. If you have or are forming a Florida partnership, you need to know: What should be in my Florida partnership agreement?
What is a Florida Partnership Agreement?
A Florida partnership agreement is a legally-binding document that establishes essential elements of the enterprise and how the partners’ business relationship will operate. This governing document will dictate how the partners will run their business and make certain decisions.
Why do I Need a Florida Partnership Agreement?
Operating a Florida business can be complex and usually involves having to make several decisions on an ongoing basis. Your Florida partnership agreement will establish who has decision-making authority and each party’s responsibilities and obligations. The contract will also specify how tasks will be carried out and the circumstances under which the partnership can end.
What Should be in My Florida Partnership Agreement?
Florida partnership agreements are governed by state law. Therefore, you will want to be certain to work with a Florida business attorney when developing your agreement.
Some of the terms you should include in your Florida partnership agreement are as follows:
Partner Identification and Contributions: Your partnership agreement should clearly identify the parties and their interests in the partnership. The related terms should specify how these parties will realize profits and allocate losses.
Partnership Terms: You may want to have an ongoing partnership or one for a finite period. Therefore, when developing a partnership agreement, you and your lawyer should include language that establishes the length of your business relationship.
Decision-Making Provisions: Your partnership agreement should also include terms that specify how your business will make operational and other decisions. Generally, partners will have equal authority over business-related decisions. However, depending on the business, partners may agree that certain parties should have specific responsibilities and authority.
Dispute Resolution: Partners may find themselves in a situation where they can’t agree on important business decisions. Therefore, your partnership agreement should also include provisions regarding dispute resolution.
Partnership Changes: Other important areas to cover are partnership and business changes. You will want an agreement that has provisions related to events such as partner death and other possible events that could impact the business.
Ending the Partnership: Your Florida partnership may need to end for various reasons, and you will want an agreement that anticipates these circumstances. You will also want your contract to set out the processes to follow to remove a member.
These are just some of the terms you should consider including in your Florida partnership agreement. The best way to evaluate what you will need in your partnership agreement is by consulting with an experienced Florida business attorney. Your business lawyer can help you examine your business and determine how to create a partnership agreement that supports your business goals and protect your interests.
Contact an Experienced Florida Business Attorney
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent small business clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.