What’s A ‘Business Prenup’ & Do I Need One?

What’s A ‘Business Prenup’ & Do I Need One?

Are you starting a business or looking to introduce a partnership to your existing business?

If so, it would be wise to consider investing in a business ‘prenuptial’ agreement, prepared by a commercial law firm in Chatswood, before you jump on in.

You might think it sounds silly, but in this day and age as a business owner, it’s important to protect yourself and your business.

Consider engaging a commercial law firm to prepare a business prenup or agreement for you.

Relationships Don’t Always Last Forever – Even Business Ones!

Let’s face it – not all relationships last forever and that’s applicable to business relationships too.

Business relationships can end due to illness, loss of interest in the business and as much as we don’t want it to happen – conflict or disagreement between partners.

In the event of a ‘separation’ within the business world, you want to be in a position of protecting your interests and your business.

Although having a business agreement prepared will be an investment from you from a resources and time perspective, having one certainly helps in the long run if you do encounter an issue.

If there is a separation for any reason, a business prenup prepared by experienced commercial lawyers in Chatswood will be very beneficial in order to avoid potentially long and drawn out legal proceedings.

Also known as business partnership agreements, a commercial law firm in Chatswood, like TY Lawyers can assist with drafting a business prenup for you, your business and your future business partner to ensure you set off on the right foot.

How Does A Business Prenup Work?

Similar to a prenup for a married couple, the business agreement sets out what happens should the business partnership dissolve and both parties need to agree to it prior to entering the business partnership.

TY Lawyers in Chatswood can offer small business legal advice as a part of their commercial legal service.

In Which Circumstances Is A Business Prenup Useful?

When there are two or more partners in a formal business agreement, if things go south, a business prenup could assist in the following areas:

  1. Running Of The Business

Outlining who deals with employees and HR issues, who runs the accounts side of the business, who makes decisions about purchasing equipment for the business – these type of day to day tasks should be clearly outlined.

  1. Business Expansion

As the business grows and there’s the potential for new partners or owners to come on board, it should be agreed upon the procedure how this all happens and if there is a ‘buy in’ and at what cost?

  1. If One Of The Partners Wants To Leave

If down the track one of the business partners wants to leave, an agreement should assist with clearly outlining the process required and how the partner leaving will be compensated for their efforts and investment in the business up to that point.

These are just some of the key things that can be included in a business prenup/agreement. A commercial lawyer in Chatswood like TY Lawyers can help you identify and list other factors that you may like to include in the agreement before setting sail.

Ultimately the key is to remember that the agreement exists to help ensure every success of the business venture and any stigma relating to prenups shouldn’t deter you from going down this path.

If you need a commercial law firm to assist with a commercial agreement or business prenup in Chatswood or greater Sydney, contact our friendly team at TY Lawyers Chatswood

Have a confidential discussion about your situation and get peace of mind throughout the process. Call: 02 8007 0135 today.

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