Finding a partner allows you to pool resources and divide responsibilities in a way that can make it much easier to run a business. As long as all the partners have the same vision for the company, there's nothing to keep you from moving forward together. But what happens when you and a partner inevitably disagree? The exact answer depends on the specifics of your partnership agreement, but existing business law has established basic ground rules for managing and controlling partnerships.

In a general partnership, each member, by default, has the power to act on behalf of all the others and enter into legal agreements in the name of the company. As long as that partner is acting in good faith, one member can speak for all. As a rule, major decisions are put to a vote between the partners. In a limited partnership, on the other hand, the limited partners sacrifice any say in how the business is run in exchange for protection from liability. 

To change this default arrangement—for example, to give one partner a controlling interest or weigh some votes more than others—the terms need to be covered in your partnership agreement. It's also a good idea to keep track of business successions and other partnership changes in a partner ledger. The ledger can be simple—it's usually just a spreadsheet listing partners, their shares in the company, and other relevant information—but it's invaluable for regulating the operations of the company and determining liability.

Before you enter a partnership, speak to a business law attorney and make sure all your associates agree on how the partnership will work. By taking the time to structure your organization carefully, your business will run successfully and you’ll avoid potentially disastrous issues.

From their offices in Connecticut and Rhode Island, the attorneys of Zangari Cohn Cuthbertson Duhl & Grello P.C. provide representation to individuals and businesses throughout New England. In addition to business law, the firm's practice areas, which can be found on their website, include real estate, civil litigation, and estate planning. To schedule a consultation at the New Haven office, call (203) 789-0001; for the Warwick, Rhode Island, location, call (401) 244-9048 and for Hartford (860)-380-5323.