I was recently working with two best friends on a new legal entity and they were asking about an operating agreement for their new business. Trying to save money, they found a form online and asked me if it was OK. They had attached a separate piece of paper in which they described how income and losses should be allocated between them.
Unfortunately, the information on this additional piece of paper conflicted with other provisions in the body of the agreement. A situation like that is a dispute waiting to happen.
I made sure that I understood exactly how they wished to allocate the company income and losses and revised their agreement to be consistent and clear.
Think about it: Have you ever seen any reviews on the contract forms available online?
Online forms might be better than nothing, but not by much. When going into business with other people, it's important to have that relationship documented properly.
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