Business Partnership

Some forms of incorporation of legal entities involve the division of the authorized capital into shares, it leads to the ownership of several founders, which is a business partnership.

Partnership is a responsible decision, therefore Beliaevs & Partners LLC advises you to learn about the legal and not legal nuances of business partnership.

Business partnership advantages:

1.      Distribution of financial costs. A legal entity is created with funds of several persons. It lets the costs and risks distribute among several people.

2.      Two heads are better than one. Decisions are made in a collaborative way there. It lets the knowledge, experience and ideas accumulate.

3.      If one business owner is absent, the business continues functioning.

4.      Doing business with a partner allows you to be in two places at the same time or to solve two problems at the same time.

Business partnership disadvantages:

1.      Joint cooperation dependents on participants. The partner has the right to leave any time. In addition, the business may be affected by the alienation of the share by the partner; the heirs of the founders can succeed to the place in the partnership; there can also be an enforcing the debts on the share of the participant. These changes can destroy a long lasting business without a proper legal regulation at the start.

2.      Profit is to be shared. Founders get dividends as a general rule in accordance with their ownership interest.

3.      Difficulties in making collaborative decisions. Issues related to the life of your company will be adopted by the general meeting of the founders; some of them will require a certain number of votes from the total number of participants, which can complicate decision-making.

4.      Different ideas about the future of joint cooperation and the ways of its development.

The way of partnership formation depends on the moment a participant enters a business (for example, the participant enters it in the beginning or in an already existing business), on the opportunities and limitations established in constituent documents, on the current legislation and etc.

Lawyers of Beliaevs & Partners LLC will help you to understand all the details of joint business management, including:

·        assistance in business registration and determination the majority interest of each partner;

·        assistance in determination of the decision-making procedure in joint business and its management, profit distribution, and other issues of partnership;

·        assistance in the purchase and sale of a share in the Company procedure; the withdrawal of a participant from the Company;

·        assistance in entering the business to the heirs of a partner;

·        assistance in amendment of the constituent documents legally;

·        assistance in arranging the entry of a partner by increasing the authorized capital;

·        legal advice and other legal services.