Legal steps when entering a partnership

[David Pascual]

A friend and I are looking to partner up on some projects when we are ready to pull the trigger (he will help with the financing and I will find the deals) before we do anything what legal steps do we need to take because of the partnership we agreed on?

[Tom Cafarella]

My advice would be to draw something up on paper that you would both agree to(the basic terms of the agreement), put it on paper and have both of you sign it. I would strongly suggest not setting up any sort of legal entity or even getting an attorney involved until you get the first deal under contract. Just make sure that the terms you both want is spelled out on the original agreement that you draft up yourself(in layman’s terms) and then once you are ready to pull the trigger you can have an attorney do a review and make sure that any possible issues are resolved.

Right now, focus on getting a great deal.