Why a Business Agreement is Necessary to Avoid Partnership Disputes in Iowa

Many small and large businesses are struggling due to the poor economic situation of our country and are feeling financial stress. This is also true for businesses in the state of Iowa. Because of this, many new business owners are sharing the management of their businesses, and starting companies with close friends or relatives they can trust.

It is essential that a proper business partnership agreement is established up front, even when starting a business with a close friend or family member. When entering into a new business partnership agreement in Iowa with your friend or relative, it is common to be optimistic and trusting. It is hard to possibly foresee that there would ever be a dispute between you and your close friend or family member, but it does occur.

Setting up an Iowa business partnership contract will help you prevent most legal problems and partnership disputes. An Iowa business lawyer can make sure your contract includes the necessary provisions and help you establish a thorough business agreement. The terms and conditions of the partnership should be written down as well as several other items, including:

  1. Business name

  2. Objectives and targets

  3. The percentage that each partner owns

  4. Division of the profits

  5. Decision making

  6. Withdrawal of one partner, entering of a new partner, or death

Most partnerships are generally set up equally, with 50 percent ownership in the company and 50/50 profit sharing. This helps alleviate most disputes; however arguments and disputes still arise and sometimes an Iowa business litigation lawyer is needed to help guide you to a resolution.

An experienced Iowa business litigation attorney can be of help when setting up a business contract. This will ensure that the business agreement is drawn up properly, and protect both partners if a dispute arises later down the line. Contact the experienced Cedar Rapids business litigation attorneys at Brady Preston Gronlund at (319) 866-9277, or fill out our quick contact form and we will get in touch with you or send you helpful information.

Also, if you need legal counsel as a result of a business dispute in Iowa, our business lawyers will be able to help you properly resolve your dispute.