Obtain Insights into your Rights and Obligations
It’s common for friends to decide to go into business together. However, as experienced commercial lawyers will tell you, it’s equally common for friends to fall out when they become business partners. Businesses are often started by friends who take a shared idea or vision forward and turn into a profitable venture. The initial excitement of starting up a new business often results in the partners turning a blind eye to the problems that may occur in the future. This is especially true when young and inexperienced entrepreneurs embark on a new business.
There is always a possibility that things may turn sour or the partners may have divergent visions for the business. In other words, it’s important to have a set of watertight business documents and an agreement that provides guidelines on various aspects of business. In fact, it’s fairly common to come across businesses that lack governing documents in cases of disputes. Most shareholders tend to consult a legal professional after the problems start rearing their heads. It’s a good idea to have a business agreement or governing documents in place because you will have a well-structured reference that contains solutions to contentious issues that may arise.