What needs to be included in a simple business contract with a partner?

Question by MoonSinger: What needs to be included in a simple business contract with a partner?
I am thinking of embarking on a small business (perhaps start thru ebay) & I need a very simple, straightforward contract between me & the artist for whom I will be selling his artwork. We have decided on a 50/50 profit deal. I want it to be as simple as possible. Ideas?

Best answer:

Answer by NZ curious spectator
I can’t send you a contract.

However, you need to realize that a business partnership is a lot like a marriage, and too few of either end pleasantly. It is good to have at least a clear understanding about the main points.

You need to cover at least:
a) what each person must put in at the start
b) what each person must put in if the business needs money
c) how decisions get made
d) what happens if somebody dies
e) what happens if you cannot agree or get along
f) what each person can take with her when she leaves
g) what each person gets when it ends

Keep in mind that the business name, customer list and other intangibles count.

Also, keep in mind that a sloppy business partner can get you in trouble. You can be personally liable for things like sales taxes and payroll taxes, even if you do not know they are unpaid. If you don’t have a corporation or LLC, you can be liable personally for all the debts of the business. Be careful. At least cover items above in writing.

Good luck.

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