There are three main types of partnerships: general, limited and limited liability partnerships. Each type has different effects on your management structure, investment opportunities, liability implications and taxes. Be sure to record in your partnership agreement the type of partnership you and your partners choose. But even if owners insist on maintaining both 50-50 voting rights and distribution rights, there are a number of provisions that owners can ask their lawyers to include in their company`s corporate agreement (which governs the operation and management of LLCs) in order to avoid and/or resolve a blockage in a fair and timely manner. Each partner must have access to the entire ownership of the company, regardless of the tasks assigned to them. It is also important to have a dispute resolution process that is timely and efficient. If it is not a contractual object and a dispute, it can become very expensive. So you`ve opted for a 50-50 partnership and you want to know what to do next. A limited liability company is a more formal business structure combining the limited liability of a limited liability company and the tax advantages of a partnership.
Launch an LLC with an LLC enterprise agreement. Of course, “fifty-5fty” is itself a vague term, and if the owners say they want to own the fifty-fifty business, a good lawyer should try to determine whether they think the voting rights are divided equally between the two or, as they more often think, the rights to the profit distributions should be distributed fairly between them. Owners may be surprised to learn that in limited liability companies – or LLCs, the form in which most new businesses operate – an owner`s voting rights do not have to be proportionate to their rights to obtain the distribution of profits. Reallocate these rights and powers can be a good first step in helping fifty-fifty homeowners avoid a (otherwise almost inevitable) impasse. If, among other things, you part with the best conditions, a clear and thorough creative agreement is essential. You want to decide in advance how you buy your partner or vice versa – how your partner will buy you. This is important in any partnership, although it is especially important to reflect on disputes and blockages in 50-50 companies, as the deadlock situation is an obvious possibility. . . .