Everything ends badly. If it didn’t, it wouldn’t end…
That is a very pessimistic view - let me say that right out of the gate. But is it the view of a pessimist, a realist or perhaps a pessimistic reali… I’ll stop. Take for example the fairly recent case of Mercedes Corby’s business partnership with her “bestie” that went horribly and quite probably, irreversibly wrong!
If you don’t think you can stomach the news clip or are simply averse to broadcast journalism – here’s the skinny.
Going down with the (partner)ship
The two ladies, by all accounts very good friends, went into business under the partnership structure (as opposed to a trust or a company structure) suffered some business-related adversity, turned on each other and the business is now in tatters. Presumably, aspects of their lives may also be in disarray and this is an all-too-common occurrence when people enter into a partnership with ineffective or zero, safeguards, by-laws, advice…
No doubt partnerships are absolutely the right business structure for certain entities but even so there will be good times full of laughs (Boston Legal – old school but funny) and trying times full of fears and paranoia (Suits series 1 – forever).
Avoid sleepless nights and ugly fights
After the proper due diligence and talks with trusted advisors a lot of people opt for the relative safety and peace of mind that a Trust or Company structure can offer. In very basic terms (and please do contact us/ if you want to learn more) these structures protect you and your personal assets from aggrieved stakeholders, workers, teammates in the business and so on.
On the other hand those locked into partnership business structures may lay awake at night wondering if an oversight by one of their partners may mean a teary farewell to a chunk of their assets.
Sleep on it (if you can) and maybe give us a call for a chat if you are thinking about which business structure might be best for you.