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Partnerships require agreement during business planning process

Businesses come in many different forms. In addition to sole proprietorships and corporations, some Ohio entrepreneurs decide to form a partnership. This type of arrangement can be beneficial in that there is more than one individual to provide all the necessary components for a successful business. However, this arrangement also means that there is room for disagreement; how to handle potential disagreement should be addressed as a part of the business planning process.

Financial disagreements are perhaps the most common type. In many instances, one partner is responsible for the overall financial responsibilities within the company. When this is the case, it is possible that other partners may not be aware of the actual income and expenses of the business. This can lead to disputes and can also open the door to one partner not being transparent in regard to the company's financial operation.

Another area of dispute that often arises has to deal with the time and effort that each partner invests in the business. Prior to entering into a business arrangement, the degree to which each partner will be committed should be specified in a written agreement. Additionally, which partner is responsible for which decisions should be addressed.

Partnerships are a common business type throughout Ohio. Rather than just depending upon the skills and strengths of one individual, this form of ownership brings together a variety of strengths on which the business can capitalize. However, the possibility of disputes and how they should be handled needs to be addressed as a part of the business planning process. An experienced attorney can help the partnership discuss the various aspects and draft a written agreement.

Source: businessnewsdaily.com, "How to Resolve Common Business Partner Disputes", Marci Martin, Sept. 20, 2017

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