If you have started a successful business or are close to going from in the red to in the black, you are likely quite proud of your company. You may also have spread yourself quite thin to reach this point.
If you feel burned out about work or are running out of investment capital while your long-term goals are just in sight, taking on a partner could be a good choice. They could bring a new customer base, more industry resources or capital when you need it the most.
However, a partnership is a sort of business structure, not just an agreement between two people doing business together. Can a business that you previously operated as a sole proprietorship turn into a partnership, or will you need to dissolve your current company to create a new one?
Changing the business structure is usually an option
In most scenarios, someone with an existing company can change that business into a different form. You could turn a partnership into an LLC or an LLC into a more complex corporation. You will almost certainly have the option of turning your personal business into a legal partnership.
Protecting yourself will be crucial during that process. You will want to ensure that you comply with all appropriate laws during the transition while creating documents to protect yourself, your assets and your new partnership.
Partnership agreements will help you both clarify what you expect from each other and what you intend to contribute to the business. If you take the right steps, changing your business to a partnership could be a beneficial decision. Learning more about business law and how it will affect your evolving company will help you grow your business without running into trouble.