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Partnering Your Way to Unlimited Success 209

• Division of clients: Who gets to keep existing clients? Which
clients does a partner who's leaving get to take?

• Division of property: If the partners jointly own property,
how will that property be divided when the partnership
dissolves?

• Ongoing transactions: If a partner who is leaving has out-
standing transactions, what percentage of the commissions,
if any, is the partner entitled to?

Your partnership agreement should also indicate whether this is
a general or limited partnership. In a general partnership, all partners
share in the management and liability of the team. Limited partners
have little or no say in the management of the team and can limit
their personal exposure to liability. Defining what it means to be
a limited partner can be confusing and complex, so consult your
attorney. You may also want to ask your attorney to discuss other
options for structuring your partnership as a separate business en-
tity (for example, as an S-corporation or LLC) for additional legal
protections against your personal assets.

Remember: When forming a partnership agreement, you
and your partner(s) each should be represented by your
own attorney to ensure that each partner's interests are pro-
tected. Always have an exit strategy in place very early on.
If later you have a falling out, agreeing on an exit strat-
egy and an equitable division of assets becomes much more
challenging. Think of your exit strategy as a prenuptial
agreement.

Forming Unique Business+Business Partnerships

With business+business partnerships, your business remains an en-
tity unto itself but partners with other business entities to pursue
opportunities that generate revenue for both of your businesses.