Last year, I had the honor to speak at the Texas Society of Certified Public Accountants’ Young and Emerging Professionals Conference in Austin. As always when speaking, I got some good feedback from the audience. While discussing business partnerships and negotiations, I learned that many of the CPAs in the room had experience with faulty corporate and LLC documents. Most of them were not willing to do them as part of their firm’s practice.
Several people said that they had done valuations, so some of the partnership issues we talked about, including planning for the death of a partner, disability, divorce, and disagreement, touched heavily on the valuation area. Regardless of what caused or how one of these events happened, there would be valuation issues involved. Our discussion included allocations of profits and losses, how the provisions would work together and affect the accounting for the business partnerships.
What types of issues are you seeing with business partnerships? What accounting issues come up because of partnerships? How can you make your business partnerships work better? Please comment below.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Alvaro Prieto.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.