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Replace Arrow to the Partnership Agreement

Replace Arrow to the Partnership Agreement

Aug 6th, 2022

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How to Replace Arrow to the Partnership Agreement

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51 votes

Attorney Sarah Holmes explains the importance of having an operating or buy-sell agreement in a business partnership. She discusses the consequences of not having these documents, emphasizing that in such cases, the breakdown of the partnership will be governed by the default state laws pertaining to the business entity. For instance, if you have a Pennsylvania LLC without an operating agreement, state statutes dictate the outcomes by default. Often, these default rules may not be favorable for the partners involved, highlighting the need for proper documentation to avoid unintended legal consequences in a partnership.

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