"It lasted about a year," said a man who had done this. "Now the fellow, who has cleared out, has the capital and I have the experience."
A partnership is an agreement between two or more persons to associate for the purpose of carrying on a certain form of business.
Each member of a copartnership must contribute a stated contribution to the establishment of the enterprise, but each need not give the same amount.
Neither is it necessary that the contributions of each to the firm shall be of the same character.
One may contribute a building, another machinery, or material, and still another money.
The shares in the profits are based on the cash values of the different contributions.
The work of the different parties may be estimated as contributions, but in such cases it is better to pay the worker a fixed compensation, and charge this to the expense account.
PREPARE AND SIGN
Never go into a partnership based on a verbal agreement, unless it be for the distribution of fish, game or nuts, when out with a friend for a holiday.
Have the copartnership articles carefully drawn up and signed before you put a cent into the undertaking. A document like this can be appealed to should disputes arise; and should a partner die, his heirs may find it of the greatest value.