A partnership agreement is a vital document that governs how a company is run by its owners and managers. It is especially vital when a company has multiple owners as it sets forth important rules, such as how owners vote on key decisions.
Seeking experienced legal counsel when creating a partnership agreement in Virginia could help you avoid mistakes that lead to costly future litigation.
The cost of drafting a partnership agreement in Virginia can vary widely based on the type of business and the structure of the company. That is why our firm provides a fixed-fee arrangement through our Handshake Portal. Our goal is to help companies avoid unpredictable legal fees and save you time by getting the right agreement in place fast.
Our Handshake Portal guides you through a streamlined process of drafting a partnership or operating agreement for a company with multiple owners. The process requires that you enter some basic information about the company in the Handshake portal, which automatically generates a draft agreement for our team to review.
Upon review, our seasoned legal team will take the time to answer any questions you have about the document. Once you are satisfied, we will send you the final partnership or operating agreement for review, negotiations with other parties, and eventually, your signature!
One of the most important terms of the partnership agreement is to clearly identify who owns the entity and their respective ownership percentages. Furthermore, the document should address how these owners will handle tax issues and share the company’s profits.
A well-drafted partnership agreement will also outline the working relationship between the company’s owners and management. In addition to the terms previously mentioned, the document should also address issues including:
Drafting your own partnership agreement in Virginia is possible, but we strongly recommend using our Handshake Portal to help you identify potential issues that might be overlooked without legal assistance. While this document is not required by state law, it can help avoid expensive future conflicts between company owners.
You can start the process of setting up a partnership by first choosing a name for the business. You should check that another entity has not already taken the name before registering.
Next, you must register your business with the Virginia State Corporation Commission. Typically, Earley Business Legal will recommend using the LLC as a vehicle for your business. This certificate requires a filing fee, which is currently $100. Filing fees for registering in other jurisdictions can vary depending on the state. You will also need to apply for a federal employer identification number (EIN) and any applicable business licenses. Drafting banking resolutions will also be necessary to open a bank account for the entity.
For guidance through the process of organizing a partnership in Virginia, we recommend engaging our knowledgeable legal counsel and utilizing the Handshake Portal.
Although state law does not mandate creating a partnership agreement in Virginia, the document can help business owners avoid confusion and potential litigation about how the company is run.
Our Handshake Portal can give you guidance on the necessary documents to register your entity with the state and help you draft a partnership agreement without complicated jargon. Contact one of our experienced business formation attorneys today, and get started here on the Handshake Portal.
When setting up your company or preparing business agreements, a well-practiced Virginia business lawyer could help save you from future headaches and costly litigation.
The legal professionals at our firm use our Handshake Portal to help get you started in the right direction for your contractual needs without the complicated legal jargon. To help minimize your legal costs, we provide these services at a fixed fee rate. Contact us today to schedule a consultation and get started.
