The following are a list of partnership business killers by entrepreneur.com.

1. Sharing capital instead of expenses
2. Partnering with someone because you can’t afford to hire
3. Lacking a written and signed partnership agreement
4. Overlooking a limited partnership
5. Lacking an out or an exit strategy
6. Expecting the friendship to outlast the breakup of the partnership
7. Having a 50/50 partnership

I would have to agree, to the extent that not having a plan for each situation is a dangerous situation to be in. While you might be the best of friends with or a spouse two your business partner, if things get fucked then you better have a plan on how to handle it. It’s a tough thing to think about, and you might even feel like you might be offending your partner by suggesting such a negative thing, but keep in mind that it is in both of your best interests to have plans in place.

An important document to draft up, agree to, and sign is a company operating agreement. You can find plenty of templates and examples online. If you can’t, email me and I’ll send you a few along with a guide on how to Google. Basically, this agreement should lay out exactly what the capital investments were for each partner, as well as terms on how profits AND losses will be distributed. It is also important to detail out circumstances and steps that need to be taken to dissolve the company. For example, you might have a clause that states if one partner moves to another state and is no longer able to continue his share of work in the company, then the company should either dissolve or his share of the company be bought by the renaming members for some set amount. The agreement should also state what voting and management rights each manager has. This will come in handy if difficult decisions have to be made down the road.

As always, consult an attorney before signing an agreement, even if you drafted it yourself. Have them look it over to make sure it will protect you the way you think it should in your state. Think of this as a business pre-nup. It’s never fun to come home and see your spouse sandwiched between three circus midgets, but if that were to happen, you will thank Buddha that you signed an operating agreement. er, pre-nup. You know what I mean.

Partnership Killers from Entrepreneur.com