A Business Partnership Might Be Bad for a Veteran Owned Biz

Business Partnership

A business partnership is a fun phrase to use when you want to engage another person or entity.  On the other hand, using this term incorrectly or failing to address the terms of a partnership can have a detrimental impact on Veteran-owned businesses.

In general, a biz partnership means two parties what to share profits and losses, including past debts.  Unfortunately, small businesses are fooled into thinking an undefined partnership is a wonderful thing.

Working towards a common goal sounds great until your quasi-business partnership runs into a snag.

Avoid Business Partnership Problems

Here are a ways Veterans can avoid problems:

  • Never use the word “partnership”
  • If a partnership is desired, have a written agreement defining the relationship,
  • Determine whether Minnesota Chapter 321 is appropriate or if a different business statute makes sense

Business Partnership Success Stories

Do not get me wrong, there are many examples when a partnership makes great business sense.  The issue is not goal based.

Instead, a successful partnership starts with understanding expectations.  Failing to define this type of professional relationship can risk piercing a corporate veil or negating the value of using a legal entity in the pursuit of commerce.