Ep. 154 - Adding a New Partner: Legal Risks Business Owners Must Understand

Bringing a new partner into your business can provide capital, expertise, and growth opportunities—but it can also introduce significant legal risks if the relationship is not properly structured.In this episode of the Business SOS! podcast, Rich Sierra explains the most common legal mistakes business owners make when adding a partner or investor. He discusses why many partnerships begin informally, how unclear expectations can lead to disputes, and why detailed operating agreements are essential.Rich also covers key issues that must be addressed before bringing in a partner, including ownership percentages, management authority, financial contributions, and profit distributions. The episode also highlights the importance of buy-sell provisions, exit strategies, and dispute resolution mechanisms that help prevent costly litigation.If you are thinking about adding a partner, investor, or co-owner to your company, this episode will help you understand how to structure the relationship properly and avoid conflicts that can destroy the business. How to Contact Rich Sierra: Email: [email protected]📞 Phone: 866-842-5202🌐 Website: https://www.FloridaSmallBusinessLegalCenter.com📘 Book: Business SOS! Eight Common Legal Mistakes Business Owners Make and How to Avoid Them – available on Amazon & Barnes & Noble📱 Facebook: @FSBLEGAL📺 YouTube: @RichardSierra🐦 Twitter/X: @Rich_Sierra📸 Instagram: @FSBLEGAL💼 Digital Business Card: https://poplme.co/hash/Qd9D1azj/1/s