5 Disastrous Legal Mistakes that Entrepreneurs Overlook
Mistake No. 3: Establishing 50-50 partnership
Theoretically, it seems that any enterprise based on 50-50 partnership is the ideal one. Actually it is, in many contexts, but when it comes to make an executive decision or include an investor or any new member in the board, an individual must always have the authority to avoid any kind of conflict in decision.
How to avoid it: There should be a minimal of 51-49 partnership to provide authority to any one person. "Remember, a business is not a democracy," says William Moore, founder of a San Diego based law firm.
