Here are some advantages: The main partner shares the tasks of managing a practice, both administrative and clinical. This can reduce stress. A partnership offers the main partner an integrated buyer. The partnership agreement (or shareholder contract in the case of an S Corp) will have a provision on how each partner can sell its shares to the other after retirement. My last advice is not to pay. With a little hard work on the frontend, you can find the job of your dreams and practice optometry as you wish for the rest of your career. A ridiculous non-competition clause could be (extreme example): Employee Z undertakes not to practice optometry for ten years after the termination of the agreed contract or to participate in related ophthalmological or optical services in County X or in a contiguous county of County X of New York State. As a general rule, anything greater than a 10-square-mile radius (mainly in a metropolitan area) or longer than 2 to 3 years should be renegotiated. While a paltry non-competition clause is probably not applicable in court, it is preferable to finish the work on the front line in order to avoid a scenario in which trial and court costs would be required, which can be very costly, even in the event of a win. (Advice: A sales contract or a buy-back contract may contain these items. It will determine who receives what, at what price and under what circumstances, if the situation warrants it.
A prior agreement can then avoid costly litigation.) Most enterprise agreements are defined as 50/50 agreements. This may be a gradual process depending on the buyback schedule, but the final 50/50 agreement (or even divided for multiple medical contracts) gives each partner the same say over how the business is managed. Your legal profession will be required to oversee the final partnership agreement. Is this the best way to create a partner to grow your business? Weigh the pros and cons of the partnership. Owners are looking for partners for a variety of reasons, including lifestyle, business expertise, technical skills or even capital (money). Each partner must weigh the reasons for introducing a new owner and recognize that partnerships are similar to those of marriages. All partners should have the same vision and objective. If one partner wants to reinvest in practice and the other simply wants to reap the benefits, it could be a dispute. In fact, you are very likely to spend more time with your business partner than with your spouse or family. Partnerships also mean that all commitments are shared equally by all owners. Although there are several business units that limit owners` commitments, most suppliers, lenders and lenders still need personal guarantees from all major owners.