writing a contract with a business partner

chair28

Hi Guys
I'm looking for some advice on the above. Myself and two friends are setting up a business together but we want to have stuff in writing about the future so we know where we all stand. I have no experience in this so looking for some advice on what to look for and what to put down on paper? any advice would be greatly appreciated

TY

jimmii

Write out the main points then use a solicitor to write it up as there will likely be a ton of extra stuff they suggest to have in it that you haven't even considered!

Trojan

Include a "shotgun clause" (look it up).

Consider having a majority partner, rather than an exact 50:50 split. Or look into other options for resolving disputes.

Make sure there's a provision for one partner dying, wanting to quit, disagreeing with business direction, etc. Plan for the absolute worst case scenarios, discuss them frankly now, and ensure you're both on the same page about how to deal with them, and put it down in writing.

chair28

Trojan wrote: »

Include a "shotgun clause" (look it up).

Consider having a majority partner, rather than an exact 50:50 split. Or look into other options for resolving disputes.

Make sure there's a provision for one partner dying, wanting to quit, disagreeing with business direction, etc. Plan for the absolute worst case scenarios, discuss them frankly now, and ensure you're both on the same page about how to deal with them, and put it down in writing.

Thanks, but as I said I'm new to this. What type of things should I be putting down?

Bandara

As an aside, I would really really think very long and hard about going into business with a friend. I personally would never do it.

It rarely works out and can be far more acrimonious than a normal partnership split.

Are you doing it because he/she is your friend or because you genuinely cannot do it without them. The answer needs to be the second one.