Arizona - Partnership Protection Contract

[lordblackhand]

I live in Tucson, AZ.

I am starting up a business/partnership. I want to make a legal contact to protect me if he decides to "throw me out," or vice versa. I want to make the contract such that the person who throws the other out has to pay off all fines and whatnot and the person that was thrown out takes possession of all equipment that was jointly owned... The only problem is that I don't know how to write the contract.

Any help on how I should write it would be GREATLY appreciated!

 

[Raya Tahan]

Operating Agreement

Dear lordblackhand: What you are describing is a document called an "operating agreement". I'm assuming you and your partner will create an LLC for your company. This is easy to do through the Arizona Corporation Commission. You should then have a private contract between the two of you, called an "operating agreement", which spells out the rights and duties of each partner. It should include a right-of-first-refusal in case one partner wants to sell or abandon his ownership in the company. The operating agreement should describe how profits will be distributed, how much each partner is expected to work on the business, and so forth. Anyhow, good luck with your situation. I hope it works out well for you and your partner. Just FYI: My law firm's website has an online weekly newsletter on which we publish many articles and case briefs on these types of topics: http://tahanlaw.com/Arizona_Business_Newsletter

Sincerely,
Raya Tahan
www.tahanlaw.com