Dental Partnerships- The Punji Stick Pit of Business Entities
The Definition of a partnership is: “Two or more persons entering into a business for profit”
Does this sound like you? Yes, the legal definition for a partnership is that broad. In fact, people can enter into a partnership without knowing it. The law gives the widest possible definition to allow almost anyone to form a business partnership. There are no requirements to agree to be in a partnership or documents to form it. As long as you carry out the act of working together for profit, you are in a partnership.
Do you know your rights as a partner? Likely the answer is no. Most people aren’t familiar with the full range of rights and liabilities of a partnership.
The best way to remedy this is with a Partnership Agreement. A written Partnership Agreement trumps all law concerning partnerships. This means that the default rules no longer apply and the partners can agree to what ever they want.
Areas of Interest to partners may include:
A general or default partnership gives no protection to individual partners from personal liability. If you are sued, for whatever reason, a plaintiff can go after your house, car, or any other personal items of value. A Partnership Agreement can limit that liability to only your business assets.
The default rules commands that all profits be shared equally among the Partners. It does not matter how much each partner works or the amount that they have invested. Again the Partnership Agreement can remedy this.
How and when a partner leaves the business is up to the partner. They can take their equal share of money and assets from the business at any time. This may completely cripple the partnership, and the ability for the other partners to continue the business.
We specialize in the dental field. With our combined years of experience and knowledge of the law, we can expertly craft an agreement that will leave all dentists to focus on the goal, Profit. Our Partnership Agreement lays out the working relationship between partners to increase communication and cooperation between the partners.
Even if you are already in a partnership, a written agreement can apply retroactively. Its not too late to protect your business venture.
Selling dental practices for more than 30 years across every region of Texas, including successful transactions in key markets like Houston, Austin, and Dallas.