Q&A: What kind of contract should I do for partnership in business? Can I get better template for that?
Question by M G: What kind of contract should I do for partnership in business? Can I get better template for that?
My partner had his company established and registered when I joined him in 50% partnership. Can I ask him to disclose everything about that business previous records? What am I suppose to check about established business which I would be partnering in?
Thanks.
Best answer:
Answer by Rhathid
You can ask him anything you want.
I would not join a partnership without knowing the details either. It depends on how the partnership is drawn up as well. Are you equally responsible for debt? If so, you’ll want to see the accounting records.
There’s a number of things to consider and get everything in writing. If the partnership doesn’t look appealing you may want to form a Joint Venture (JV) or a business alliance with profit sharing.
Partnerships have a range of failure from 30-60%, so your best bet may be to form a JV or Alliance.
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