How Do You Maintain Successful Partnership?

 The State of Florida defines a partnership as the association of two or more persons to carry on as co-owners of a business for profit. Under Florida's Uniform Partnership Act ("UPA"), no filing is required to form a partnership. https://askcompetentlawyer.com/ Therefore, people often find themselves in "inadvertent partnerships" as case law holds that "intent" of the parties defines the relationship. Specifically, the requisite intent to the formation of a partnership is not the subjective intent to be partners, but rather if the parties intended to conduct a for-profit business as co-owners.

One fundamental misstep that befalls most partnerships is their failure to put the partnership agreement ("PA") in writing, even though it is not required. The UPA provides much flexibility with respect to the parties' relationship within the PA. In the absence of a writing, or PA, the statute itself attempts to provide a body of default rules that would best serve a small, informal partnership. Therefore, partners should spend time anticipating issues (whether positive or negative) and address them in the partnership agreement.

Other issues facing partnerships pertain to payment of taxes, the difference in payment for employees and business partners, as well as the division of labor between the parties.

One key to a successful partnership is being able to identify each partner's strengths and weaknesses, and adjust to fit each partner in the day-to-day operations. It is also beneficial to hire a skilled attorney to help identify potential issues in order to negotiate a partnership agreement that's main purpose is to avoid conflict.