Partnerships

Financing With Strings Attached

I’ve posted similar stuff on this blog before, but it’s always nice when you get it straight from The New York Times. I just read Financing, With Strings Attached on NYTimes.com. My favorite line–I heard it first from Portland, Ore., venture capitalist David Chen — which I use a lot is “choose an investor like you...

By Tim Berry |

Don’t Let Anybody Work for Free

Here’s an insight for fairness: Always separate payment for work from equity ownership. I posted arguing with partners over compensation earlier this week, dealing with a real problem in a real company. I got a follow-up question to that today, offering more detail and asking for more detail in return. It’s messy. It also looks...

By Tim Berry |

Arguing With Partners Over Compensation

Here’s the question I got today in email: I recently started a business with four others. Modest revenue has begun and two of the partners want to draw compensation. What is the trade off for them drawing compensation while others do not? The question reminds me that a lot of people confuse getting paid for...

By Tim Berry |

Before You Tie the Knot

Shelly Banjo has an excellent story in her Running a Business column in The Wall Street Journal, called Before You Tie the Knot. I’ve likened finding an investor to choosing a spouse previously in this blog, but she goes deeper into partnerships and the like. Too many people think they know a friend or colleague...

By Tim Berry |

Shareholder/Partnership Agreements: Prepare for the Worst and You Will Succeed

So you are starting a new business and you and your partners are really excited about the endless possibilities that await you. The last thing you want to think about is the worst-case scenario — the failure of the business or a partnership gone wrong. Failure to plan and lack of funding are both leading...

By Chad Barczak |

Plan for Ownership Changes with Shareholders

While diligently filing articles of incorporation and adopting bylaws, many corporate owners overlook a critical element of their business relationship: buy-sell, or buyout, provisions. By creating a shareholders’ agreement with buy-sell provisions, the owners of a small, privately held corporation can prepare for events that have been the downfall of more than a few successful...

By Nolo |

Plan for Changes in Partnership Ownership with a Buy-Sell Agreement

Many business partners overlook a critical element of their partnership agreement that can save them both money and angst: buy-sell provisions. When you create buy-sell, or buyout, provisions for your partnership agreement, you and your partners can prepare for events that have been the downfall of more than a few successful small businesses — namely,...

By Nolo |

Creating a Business Partnership Agreement

If you plan on going into business with a business partner, a written partnership agreement is important. If you and your partners don’t spell out your rights and responsibilities in a written business partnership agreement, you’ll be ill-equipped to settle conflicts when they arise, and minor misunderstandings may erupt into full-blown disputes. In addition, without...

By Nolo |

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