Starting a new business can make you feel good about your professional life. Such empowerment comes from taking control of your career, building your security and enriching your community. However, business formation also comes with a certain amount of risk, which is why some entrepreneurs in the Lynchburg region choose to take on a partner.
In many situations, a business partnership works out very well for all parties. Other times, the partnership fails, leading to increased risk, loss of funds, and in some cases, total business failure. Before you decide to create your new business with a partner, it is wise to make certain you understand the consequences. The following section contains some possible pros and cons of business formation with a partner.
- Sharing start-up costs
- Sharing business expenses and risks
- Sharing workload and responsibilities
- Mutual motivation and support
- Increased creativity and skills to complement the business
- Giving up total control
- Sharing of all profits
- If your partner disappears, you will be liable for his or her debts
- You may experience partnership conflicts or disputes
- You may have to compromise on business operations
For many, the pros of business formation with a partner outweigh any downside. You and your potential partner may minimize your risks by working with a Virginia attorney. For example, a lawyer can help you create a written agreement detailing each partner’s responsibilities as well as instructions for how to dissolve the partnership should the need to do so arise.
Being well-informed and prepared for any legal hurdles that may arise can go a long way in making your business formation endeavors successful. An experienced attorney can help you and your partner set your business up for success by addressing potential problems before they occur.