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New Year, New Partnerships: Legal Considerations When Entering Into a Business Partnership
New Year, New Partnerships: Legal Considerations When Entering Into a Business Partnership

New Year, New Partnerships: Legal Considerations When Entering Into a Business Partnership

You’ve met up with a fellow entrepreneur, inspired by a shared vision for growth and success. You’re excited, plans are forming quickly, and you’re ready to sign the paperwork. But what happens if expectations shift, profits aren’t equally shared, or one partner wants to leave the business?

A promising partnership can lead to success or costly disputes. Without the right legal structure and agreements in place, even minor disagreements can escalate into complex legal challenges that threaten your business’s future.

At Buxton & Collie, LLC, our Charleston business attorneys help entrepreneurs like you build strong partnerships on a solid legal foundation. Whether you’re launching a new venture or expanding an existing one, we ensure your partnership starts with clarity, protection, and long-term success in mind.

Choosing the Right Business Structure

Did you know your business structure affects everything from liability to taxes? Selecting the proper structure isn’t just a formality—it’s a decision that impacts how your business operates and how protected your personal assets are.

For example, if you’re starting a local Charleston-based design firm with a partner, an LLP might be ideal to protect both partners from personal liability while sharing creative control. Our Charleston business attorneys help you weigh your options and choose a structure that aligns with your goals while safeguarding your interests.

Drafting a Comprehensive Partnership Agreement

Would you go into business without a contract? A handshake might feel like enough when you trust your partner, but a well-crafted agreement can prevent misunderstandings and protect both parties in the long run. This document should cover:

  • Roles and Responsibilities: Who handles what in day-to-day operations?
  • Profit Sharing: How will profits (and losses) be divided?
  • Decision-Making: How will major decisions be made—by majority vote or unanimous consent?
  • Exit Strategies: What happens if a partner wants to leave or sell their share?

Clarifying Ownership and Control

Who owns what—and who gets the final say? Without clear guidelines, disputes over ownership stakes and decision-making authority can quickly arise. Our Charleston business lawyers help you establish:

  • Defined Ownership Percentages: Specify each partner’s share in the business.
  • Voting Rights and Control: Clarify how decisions are made and who holds voting power.
  • Conflict Resolution Procedures: Establish steps for resolving disagreements, such as mediation or arbitration.

Why Legal Guidance Matters in Business Partnerships

Many partnerships start with excitement and mutual trust—but legal oversight ensures that trust is backed by enforceable protections. Without proper guidance, you risk:

  • Unclear Liability Protections: Personal assets could be exposed if the structure isn’t properly chosen.
  • Profit Disputes: Vague agreements can lead to disagreements over revenue sharing.
  • Exit Complications: What happens if a partner wants to leave? Without a plan, it could disrupt the entire business.

Protect Your Business with Proactive Legal Strategies, Contact Buxton & Collie, LLC Today

Ready to make your new partnership thrive? At Buxton & Collie, LLC, we help Charleston business owners like you protect their ventures with personalized legal strategies. Contact us now to schedule a consultation and start a real conversation about your business partnership. Do it the right way. Let us help you protect your business and turn your vision into lasting success.