• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Info on a loan agreement for a partnership

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

skylerc989

Junior Member
What is the name of your state (only U.S. law)? West Virgina


I have a partnership with 2 other people and we are opening a store soon. We have discussed taking out a loan. Since I have the best credit, I am taking the loan out in my name. But we all have agreed to split the monthly payment equally. What kind of contract should I draw up to protect myself and keep everything professional.
 


latigo

Senior Member
What is the name of your state (only U.S. law)? West Virgina


I have a partnership with 2 other people and we are opening a store soon. We have discussed taking out a loan. Since I have the best credit, I am taking the loan out in my name. But we all have agreed to split the monthly payment equally. What kind of contract should I draw up to protect myself and keep everything professional.
I'll tell you what is needed. It is to get the hell out of this partnership!

No sane person cognizant of the financial exposure and hazards of a business partnership would be foolish enough to become a principal in such a risky undertaking.

Are you aware that each general partner is an agent for the partnership and can singularly bind not only the business, but the individual partners? Not only for contracted debts, but tort liability as well. And that all of you personal assets are on the line for all business debts and liabilities. Precisely the same as the business itself!

Never, never would I allow a client to become involved in such an enterprise. They are a veritable mine field!

Get with your business lawyer (for the first time undoubtedly) and see what is needed to wind up this monstrous thing you foolishly got yourself into. Then if you are still inclined to associated with the same individuals, let the lawyer explain how to structure the business to protect yourself. Otherwise you are a sitting duck! Comprender?
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top