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How to Choose a Business Partner

Whether a new Maryland business is formed as an LLC, Partnership or Corporation, selecting a co-owner is the most important decision that any entrepreneur can make. Co-owners will share liability, expenses and profits. Most importantly, they will spend significant time together shaping the direction of any new business. When selecting a business partner, consider the following factors:

• Take Your Time
  Get to know your potential partner. Find out who they are, what skills and experiences that have to offer and how you will work together to run your business. Be sure you choose a business partner who shares your values, spirit and vision.
  
• Conduct a Background Check
  Check out the potential partner's background to find any past dishonesty, substance abuse problems, or criminal violations before going into business together. You should also ask for a list of professional and personal references you can talk to before entering into any agreements.
  
• Find a Partner That Can Bring Skills and Experience to the Business
  Don’t duplicate yourself. A good business partner should have skills that support and compliment your own. If you and your partner can bring a more diverse skillset to the business together, it will make the entire process of starting, managing and growing your business easier.
  
• Choose a Partner That is Financially Stable
  Even if your partner is not contributing financially to the business, someone in the middle of a financial crisis may not be the best choice. Money, asset, and time management skills are critical for small business entrepreneurs. You want to have a partner who has good business sense and clean financial history.
  
• Involve a Smart, Experienced Lawyer Early On
  An attorney can help you build important information into a partnership agreement, such as how the work will be divided, what will happen if more money is needed, and how decisions will be reached, as well as what will happen if one partner wants out. Having non-compete agreements in place is another good safeguard to protect proprietary information about your business.

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