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.