Two seemingly perfect partners each had money to invest in a gourmet-food business, had different areas of expertise and shared common goals. Despite having a great idea and working well together, their partnership dissolved because on partner became distracted by a recent divorce. This partner had conveniently failed to mention the divorce during discussions about the new business. Old friends have the advantage of being known entities, but being buddies for many years may make you too casual about formalizing the business arrangement. That could mean that you would leave critical details about responsibility and accountability unmentioned in the planning process.
Similar difficulties arise when husbands and wives go into business together.
Get the help of a good attorney who will write the contract in understandable English. Ideally, both partners should have independent legal representation in drafting or at least reviewing the agreement. Provisions that spell out the timing of withdrawal of partnership profits. Spell out how the value of the business will be determined in this situation, and how a buyout will be executed. Provisions for continuing the business in the event of death, disability or withdrawal of one of the partners.