Did you form an accidental partnership?

Did you form an accidental partnership?

On Behalf of | Nov 9, 2021 | Business Formation |

Often, starting a new business comes with long hours and tasks without pay. Friends and family can be great at supporting you as you start your new business.

As your friends and family help you on your way to success, you may find one of them has a different view of the relationship they have with you and your new company. You may not have planned to have a business partner, but sometimes your actions can speak louder than your intentions.

Here’s what you should know about forming an accidental partnership.

No agreement required

Many business partnerships start without an agreement, and as the business begins to change, partners will formalize their relationship. However, in some cases, people who made no formal agreement find they created a partnership.

When you involve another person in the day-to-day decisions and tasks of the business, it starts to look like they are your partner. If you give your partner the ability to make decisions about the company, it seems more like you intend to have a partner.

In many cases, the more responsibility you give your partner (especially financial responsibility), the more it looks like you want the relationship to be official.

You can fix it

When you realize you formed an accidental partnership, you need to decide how to proceed. You can either make them an official partner, or you need to establish boundaries.

Regardless of what path you choose, you should get your new understanding in writing so that it is clear what both parties should expect.