Lawgitimate – Partnership Pitfalls hosted by Mike & Rochelle Poulton covered the most common problems business owners face with partnerships. Mike & Rochelle have represented businesses and consulted with many business owners, and discuss their personal experiences and observations in this episode. Decision making, splitting profit, knowing your role, and the importance of good communication are just a few points covered in this episode.
This episode is Mike and Rochelle Poulton talking shop about business ownership and the most commonly faced problems with partnerships. If you want to know more about how to have a successful partnership, this episode is for you.
Partnership Pitfalls – The highlights
Everyone in business has a partnership tale. The unfortunate truth is most of these stories end badly. During this episode we covered the top problems with partnerships.
If you are new to business, we know that despite all the warnings, you will enter into a partnership at some point. So, here is a quick list of the top mistakes in a partnership.
- Unnecessary Partnerships happen. Just because someone is important to the business, does not mean they should be a partner.
- No Operating Agreement. Arizona LLC rules changed a lot in 2019. You need a signed and well understood operating agreement.
- Understand the terms of your partnership
- What does it mean to be partners
- How does the partnership function
- Identify Responsibilities and Duties
- Compensation – discuss it
- Repayment of Capital
- Payment of Expenses
- What to do when things go bad
- Exit Stratefy for when thing go well
- Don’t do 50/50 – someone has to be in charge
- Formalities – follow them
- Comingling is a bid deal, don’t do it.
Our recap: There are more reasons to say no than yes to a partnership. If you are going to do it, consult with an attorney to protect your interests.
About Your Hosts
Rochelle Poulton is an attorney and owner of X Firm LLC. She has been helping people with Credit and Debt issues since 2012, owns several small businesses, and has nearly 20 years of real estate experience.
Rochelle created Lawgitimate to bring in a network of awesome people to raise awareness and educate people about the litany of legal issues she faces every day at X Firm LLC.
Mike Poulton, with Poulton & Noroian, draws on his knowledge and experience in other fields to serve his clients. As an experienced science researcher, Mike understands technical issues that many other attorneys cannot, and applies that knowledge for his clients’ benefit. His construction management experience also provides him with a broad knowledge base not only in construction law, but also in regulatory compliance, worker safety, and negotiation.
Michael is licensed to practice law in Arizona and is admitted to practice before the U.S. Federal District Courts in Arizona.
Connect with Mike on LinkedIn.
About X Firm PLLC
We help clients improve their financial lives through strategic financial transaction planning. Whether you want to buy a car, a home, or a building, X Firm can help you reach your goals in 3 easy steps.