Law and Party Autonomy Essay

Submitted By Swapy2601
Words: 650
Pages: 3

Starting a business with a partner has significant advantages. It helps in making the most out of shared resources and complementary talents. However, there are important considerations one should take into account before jumping into a partnership.

First thing first one should consider if partners are needed. Being afraid to go into business alone, or lacking financing, skills or connections may be the wrong reasons for a partnership. One may be able to get someone to do something without giving away a share of your business. Hiring someone or finding a mentor to bring capital, skills, or a network to the table.

Get to know the partner first. It is important to look into the potential partner’s values, personal goals and financial situation. Working with a partner who does not share your business values and ethical standards may discredit your reputation with clients and other partners. Consider partners who compliment with your personality and skills. Pros and cons also should be considered.
An examination into the potential partner’s personal goals and vision of the business will not always guarantee a complete alignment, but it will avoid fundamental disputes and unpleasant surprises. One should always ask for references or run a background check before entering into an agreement.
Decisions should always be taken by communicating with each other. One should even work with potential partners on contract or short projects to understand their expectations towards the business and then decide.
Once a decision is made whether you would like a partner, ensure that all the legal implications that are mentioned below are important before jumping into partnership agreement.
1. A written partnership agreement.
2. Registrations and licenses.
3. Deciding and dividing roles and responsibilities.
4. Common goals towards profit maximization.
5. Developing strategies
6. Developing exit strategies
7. Understanding partnership dissolution and make a plan.

Business partners do likely go on their separate ways at some point. One must be prepared for the scenario to determine how partners will be compensated and how resources will be divided. Emotions also run high and wrong decisions can be taken if a operating deed is not signed.
In that case, figuring out from the outset whether we need a another partner and how the partnership will operate with regards to compensation, exit clauses, and roles and responsibilities, will give a solid general framework for a successful partnership.

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