RENO, NEVADA / ACCESS Newswire / August 14, 2025 / With more and more people starting their own business or acquiring a business partnership, legal experts are warning of the legal dangers surrounding DIY partnerships. Having a business partner can be very lucrative to a business's success, but failing to plan for legal complexities could be a recipe for disaster.
Many entrepreneurs think avoiding legal counsel is an easy way to save money, but legal contract review and risk prevention can be much less costly than dealing with unplanned litigation. When entering a business partnership, every step can have extensive avenues of complexity, and many pitfalls can be easily overlooked-resulting in business devastation.
Main areas of a business partnership agreement include, but are not limited to, the following:
Capital Contributions: The amount of capital that each partner will contribute and be held accountable for.
Duties & Responsibilities: Each of the partner's specific roles and tasks within the business.
Withdrawal & Dissolution: The process of if and when a partner leaves the partnership, which includes procedures for how it will be dissolved and what that looks like.
Buy-Sell Provisions: The established method for valuing a partner's interest if they leave the company or pass away suddenly. This will include who has the right to buy out the exiting partner's interest, with terms of the buy-out clearly specified.
Profit & Loss Allocation: How profits and losses are divided and can be based on capital, contributions, or another defined formula.
Management & Decision-Making: The authority structure that states who has the power to make certain decisions.
Dispute Resolution: The agreement that specifies how disputes between partners are resolved, whether that be mediation, arbitration, or litigation.
"DIY partnership contracts can accidentally be fraught with mistakes that lead to large consequences. Seeking legal advice beforehand is of the utmost importance," says Ken LaMance, LegalMatch's General Counsel.
Entrepreneurs who are interested in business partnerships can find helpful resources online. LegalMatch.com, America's first-ever attorney-client matching platform, is a free online resource. At no cost, entrepreneurs can be matched with a business law attorney who is experienced in partnership agreements. The platform also has an Online Law Library filled with educational articles on many legal topics, including business law and partnership agreements.
About LegalMatch.com
LegalMatch is the nation's oldest and largest online legal lead-generation service. Headquartered in Reno, Nevada, LegalMatch helps people find the right lawyer and helps attorneys find new clients. LegalMatch's service is free to individuals and small businesses looking for legal help. For more information about LegalMatch, please visit our website or contact us directly.
Contact Information
Ken LaMance
LegalMatch's General Counsel
press@legalmatch.com
415-946-0856
SOURCE: LegalMatch.com
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/legalmatch-comments-on-business-partnerships-how-to-be-prepared-1060823
