Pros and Cons of forming a partnership

[Tucker Walser]

Hey everyone!

Happy 2020! I am a new investor and determining if I should form a partnership with someone. I don't know much about partnerships so uncertain about what to expect with forming one. What are some advantages and disadvantages of forming a partnership? How do banks view partnerships? Any insight would be much appreciated!

Thanks!

[Doug Smith]

It has been my experience that partnerships have worked well for me in short-term ventures with a well-defined path and end goal. I've had bad luck with partnerships that have been ongoing. I've found that one of the parties ends up doing most of the work and, at some point, animosity starts to creep in. If you do choose to go into business with others, have your own attorney handle the agreements on your behalf. One of my worst business mistakes was when I tried to save the attorney fees and do it myself. Good luck to you.