Helping Your Partnership Succeed

In the business world, just as in the domestic arena, not all partnerships work out. Even when the business appears to be running smoothly, it is wise to make sure your interests are protected, should the partnership dissolve for one reason or another.

At the law firm of Smith + Schwartzstein, our New Jersey business law attorneys have significant experience with the drafting, review and enforcement of partnership and operating agreements. Based in Morristown, our lawyers represent business owners throughout the states of New Jersey and New York.

Avoiding Costly Disputes

The worst business disputes are typically partnership disputes. Many small-business owners have their financial resources deeply invested in their businesses. It can be extremely detrimental, both economically and personally, when one partner misappropriates funds, leaves unexpectedly or causes other issues. A carefully drafted partnership or operating agreement can help alleviate the potential for disagreements and bolster the business's success.

Operating Agreements For Partnership Agreements

An operating agreement essentially performs the same functions as a partnership agreement, except that it pertains to a limited liability company (LLC) instead of two individuals.

In New Jersey, specific statutes govern business relationships in the absence of formal, written agreements between the parties concerned. It is important for parties who form either a LLC, Partnership or Corporation together to have a governing agreement in place such as an operating agreement because it will provide vital structure and governance to the business relationship. Without an operating agreement, both parties will be at the mercy of the New Jersey statutes. In addition, it can help the parties clarify their roles and expectations of the relationship prior to entering into the relationship; therefore, preventing potential disagreements later.

Learn More

Our law firm has seen numerous business arrangements fall apart, and in such cases having a well-crafted partnership or operating agreement is vital. Learn more about how such a contract can benefit your business by scheduling a consultation with Smith + Schwartzstein. Call our Morristown office locally at 973-532-2962 or toll free at 800-779-4098, or contact us by email.