Partnerships

In the canine sports and work environments, partnership is the key to performance. Partners need to be a good fit. It is no different in our business world.

Recently, we watched a television show that discussed a Partnership. The one partner had passed away and their portion of the company was willed to an out of town niece. The out of town niece wanted to sell the business to garner some money to pay for a private real estate purchase. Of course, the surviving partner did not want to sell the business. The storyline had me thinking.

First, if you are not the sole owner of a small business, make sure you and the other owner or owners discuss what happens if something nefarious occurs. You can will your portion to the surviving partner or partners. That is what we did with my dog swimming business. It really makes the most sense, both operationally, and for the continuity of the business. You certainly do not plan for these life changes to occur, but they do and they will. Best to be prepared.

Second, if you wish your shares to go to someone other than your partner or partners, make sure you tell them and the person or persons your shares would be transferred to upon your death or serious illness. You may want to consider a right of first refusal for the remaining owner or owners to buy the shares from your beneficiary. This could alleviate continuity issues and provide your beneficiary with cash like the person in the television show referenced above needing.

Selling the business upon your death should not be the only option left to partners or beneficiaries. It seemed these options were not considered in the movie because then there would not have been a storyline.

So, if you are partners with others in your business, think of the company first. Make sure continuity and communication are key in your legal documentation. Partners need to respect other partners and be fair to them if something unexpected occurs. Treat your business like the asset it is.

Be well.