There are a lot of advantages to forming a business partnership. It’s an opportunity to combine resources, and that person likely has skillsets you don’t possess. Here are six things you should consider before choosing a business partner.
One of the most important aspects of a good business partnership is shared short-term and long-term values. This doesn’t mean you have to agree on everything but too many disagreements can hurt the business over the long term.
There’s a lot of work that goes into running a small business, so you need to clearly outline the roles and responsibilities of both partners from the start. It can be helpful to outline a job description for both partners just like you would in a traditional job.
The goal of any business is to generate a profit, so it’s important to outline how you plan to manage business finances. This can be tough for some people but it’s important to talk through your ideas about money from the start.
The advantage of choosing a general partnership is that it’s fairly easy to set up. You don’t have to file with the state and there are no ongoing fees to pay. However, this type of partnership provides very little liability protection to both partners.
A limited liability partnership limits each partner’s financial responsibility to the business. This structure will provide the most protection to both partners.
