Review Your Partnership Agreement. The good news is you’re smart enough to have a partnership agreement, but like many legal documents, they’re not one-and-done. You’ll need to put in some time and thought into making it right as time passes. You should update it as your business, laws, and taxes change.
Over time you may have found circumstances have come up that aren’t addressed in the agreement, or the outcome wasn’t what you planned. Whether buying or selling a partner’s share, handling disagreements, or adding a partner, the language can change to meet your needs better.
How your business was supposed to be run was spelled out in the agreement. Over time partners may have agreed informally to do things differently, but the document hasn’t changed. Making amendments in writing would make sense if a new partner joins you, so everyone’s literally on the same page.
Part of your review includes deciding whether your business should continue as a partnership. Since signing the agreement, your situation, laws, and the tax code may have changed. Running your business as an LLC or corporation might make more sense for many reasons.