Business Partnership Pros and Cons

Video from our FREE Online Business Course http://www.myownbusiness.org Session 4 - Business Organization Question: "Do you have any recommendations on how one should go about evaluating the pros and cons of taking on a partner?" John Powers Attorney-at-Law Topics covered in this video: Business organization, partnership, finding a business partner, limited liability Transcript: Partnership is a very popular form of operating entity. And I think what is most important is to think in terms of a business marriage. You're going to be living and working with this person on a daily basis, so you want to have somebody you're compatible with and someone who compliments and perhaps strengthens any weaknesses you have in order to better fulfill the goals of the business. If you have certain strengths but know that you have certain other areas you're not good at, and you have a proposed partner that maybe strong in those areas, that would be something to consider if you're able to get along and work out the other issues. I also recommend that with regard to partnerships you investigate whether there are limited liability protections available in your state and also give some thought to what would happened if in fact the partnership fails. Keep in mind that it is just like a business divorce. And you want to have given some thought to that; perhaps have an agreement in writing as to what would happen in that circumstance before you get started.