1. Get legal advice from an expert.
2. Write down each partner’s contribution in cash, services, property, equipment etc.
3. Decide on each partner’s authority when signing cheques or placing large orders. It is advisable for at least two partners to sign every cheque issued or large order signed.
4. Write down each partner’s responsibility in the business e.g. finance, marketing sales etc. Ensure that you list exactly what each partner’s duties will be.
5. Decide how will profits and or losses be divided.
6. Decide how much each partner will draw as a salary.
7. Decide how disputes between partners will be resolved. A good idea is to appoint a mediator or arbitrator that both parties agree to in advance should a problem arise.
8. Decide how the business will be valued if a partner decides to leave or a new partner joins the partnership or the business is sold outright.
9. Decide what will happen should one of the partners be disabled or die. A good idea is to take out an insurance policy that will pay out the partners share to her/his family.
10. Decide if the partnership is to be dissolved what procedure will be followed.