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Slinde Nelson

Business formation when working with another person

On Behalf of | Jun 19, 2019 | Business Formation

Starting a new business is an extensive, sometimes stressful process. New Oregon business owners have to make many important choices that will affect the future operations of their company, and this can be difficult when working with a co-founder. While launching a company with another person can be beneficial in many ways, it is smart for a person to proceed carefully through the business formation process and work to avoid complications down the road. 

One of the benefits of working with a co-founder is having the help and support of a trusted individual who understands how the business should work. One of the downsides to working with someone else is that what was once a good, easy business relationship can change down the road. If things become awkward or difficult personally, it can quickly have a negative impact on the business itself. 

After awhile, two co-founders may find they have two opposing viewpoints for what the long-term vision of the business includes. It can be difficult share decision-making authority and other things as the business grows. It’s smart to have an operating agreement that addresses these things and to consider during the formation stage what the co-founding relationship will look like in the future. 

Working with multiple people when running an Oregon business is not always easy. During the business formation stage, it can be helpful to draft a partnership agreement that addresses potential problems and operating procedures. When done the right way, starting a company with a co-founder can be a smart way to jump into entrepreneurship.