Article

New Year, New Partnership - What are the key points?

 

 

December 18, 2018

 

Question:

Hi Jennifer, 

It looks like I will be solidifying a new partnership for the New Year.  Any tips on what I should look out for as key points? 

Thanks, Dr. I



Answer:


First, congratulations on the new marriage (which, for the avoidance of doubt, a partnership is)...  Second, yes, absolutely, here is a short list of some very basic concepts to confirm are included in the new deal (generic, and in no particular order) - 
  1. Writing - make sure your deal is in writing - especially the particulars
  2. Exit - if you are working on getting into a parntership, make sure you know and document how you can get out before you get in, or pay your way in
  3. Capital Contribution - is there a buy in obligation?  Sweat equity? On-going call obligations? 
  4. Exposure - understand whether you are stepping into or taking on any exposure - which is typically protected contractually
  5. Control - what say will you have as a partner?  Right to make decisions in a group or unilaterally?  Should be defined by contract. 
  6. Compensation - what right will you have to revenue/profit?  Will you have a bi-weekly salary or draw?  Right to split profits at the end of the year? 
  7. Insurance - what kind will and/or should you and the partnership hold? 
  8. Liquidity / Pre-Existing Obligations of Partnership - make sure you and your accountant have access to any preexisting books and records should you be joining an entity already in operation.  Make sure you know what you are signing up for... 
Be advised that a partnership, shareholder or operating agreement is a document you really should not dabble with as a "do it yourself" project.  If you would like assistance with review and/or drafting, let Jennifer know. 

The terms of your partnership may, in the end, have a tremendous impact on your tenure and departure, not to mention potential recovery for your family should something happen to you (and should insurance or other buy out obligation be triggered (or not))!
 
 


*************************************************************
 

Every NYS Employer (no matter the size) is required to have Sexual Harassment Policies and Train NOW. 
Order Policies and Training here:   

https://www.kirschenbaumesq.com/page/practice-compliance


Learn about the law and what you need by watching our Free webinars: 
Webinar 1: CLICK HERE NYS Free Sexual Harassment Policies: Employer Beware (overview in 6 minutes) 
AND
 
Webinar 2: CLICK HERE NY Sexual Harassment Training Requirements: Protecting Your Business from your Employees

Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!
New Year, New Partnership - What are the key points? - December 18, 2018 - Jennifer Kirschenbaum

Article

New Year, New Partnership - What are the key points?

 

 

December 18, 2018

 

Question:

Hi Jennifer, 

It looks like I will be solidifying a new partnership for the New Year.  Any tips on what I should look out for as key points? 

Thanks, Dr. I



Answer:


First, congratulations on the new marriage (which, for the avoidance of doubt, a partnership is)...  Second, yes, absolutely, here is a short list of some very basic concepts to confirm are included in the new deal (generic, and in no particular order) - 
  1. Writing - make sure your deal is in writing - especially the particulars
  2. Exit - if you are working on getting into a parntership, make sure you know and document how you can get out before you get in, or pay your way in
  3. Capital Contribution - is there a buy in obligation?  Sweat equity? On-going call obligations? 
  4. Exposure - understand whether you are stepping into or taking on any exposure - which is typically protected contractually
  5. Control - what say will you have as a partner?  Right to make decisions in a group or unilaterally?  Should be defined by contract. 
  6. Compensation - what right will you have to revenue/profit?  Will you have a bi-weekly salary or draw?  Right to split profits at the end of the year? 
  7. Insurance - what kind will and/or should you and the partnership hold? 
  8. Liquidity / Pre-Existing Obligations of Partnership - make sure you and your accountant have access to any preexisting books and records should you be joining an entity already in operation.  Make sure you know what you are signing up for... 
Be advised that a partnership, shareholder or operating agreement is a document you really should not dabble with as a "do it yourself" project.  If you would like assistance with review and/or drafting, let Jennifer know. 

The terms of your partnership may, in the end, have a tremendous impact on your tenure and departure, not to mention potential recovery for your family should something happen to you (and should insurance or other buy out obligation be triggered (or not))!
 
 


*************************************************************
 

Every NYS Employer (no matter the size) is required to have Sexual Harassment Policies and Train NOW. 
Order Policies and Training here:   

https://www.kirschenbaumesq.com/page/practice-compliance


Learn about the law and what you need by watching our Free webinars: 
Webinar 1: CLICK HERE NYS Free Sexual Harassment Policies: Employer Beware (overview in 6 minutes) 
AND
 
Webinar 2: CLICK HERE NY Sexual Harassment Training Requirements: Protecting Your Business from your Employees

Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!