Buying into a Partnership

Partnership Attorneys Who Help Buy Into a Partnership

Business Law Southwest, LLC represents partners and partnerships. When buying into a partnership, it’s important to make sure the partnership documents are properly structured, and all liabilities are properly identified.

For an incoming partner, it’s important for the partner to obtain answers to the following questions:

• Are there any outstanding judgments, lawsuits or liens on the company or the threat of such events to the company?
• Is the Operating Agreement or By-Laws fair and balanced, or are their inequities between partners or class of partners?
• Are the financials audited and/or is there adequate transparency to understand and evaluate the financial condition and health of the company?
• Is there an appropriate system of checks-and-balances, and operational segregation, to prevent “commingling of funds” between one or more partners and the company?
• Is the value of the company adequately protected against double-dealing, or disinterested or uninvolved partners?
• If the new partner is contributing capital (i.e. buying equity), is his or her money protected? Is the value for their money fair?
• Is the new partner aware of the tax implications for him- or herself personally?

Business Law Southwest, LLC can help evaluate, negotiate and draft appropriate partnership documents. Our attorneys are experienced at creating fair relationships, that give partners the ability to hold themselves and each other accountable, as well as a strong dispute resolution policy and procedure, when things don’t work out.