As business partners, it`s important to establish a co-owners agreement to outline the rights, responsibilities, and expectations of each owner. This agreement not only helps to prevent conflicts between partners, but it also provides a clear framework for the business to operate within.

Here are some key elements that should be included in a co-owners agreement:

Ownership and Management

The agreement should clearly outline the percentage of ownership held by each partner and how decisions will be made within the company. This includes establishing roles and responsibilities for each partner and defining the level of involvement each will have in the company`s day-to-day operations.

Compensation and Profit Sharing

The agreement should specify how profits will be distributed amongst the partners and what their individual compensation will be. This includes outlining how salaries will be determined, whether bonuses will be given, and how equity will be distributed.

Exit Strategy

The agreement should outline what happens if one of the owners wants to leave the business. This includes outlining how the departing partner`s share of the company will be valued and how it will be bought out by the remaining partners.

Confidentiality and Non-Competition

The agreement should include provisions on confidentiality and non-competition to protect the company`s intellectual property and prevent competition from former owners. This ensures that the company`s trade secrets and confidential information remain protected even after an owner leaves.

Dispute Resolution

The agreement should also outline a dispute resolution process in the event that a disagreement arises between partners. This includes outlining the steps that will be taken to resolve disputes and what recourse each partner has if a resolution cannot be reached.

In conclusion, a co-owners agreement is crucial for any business with multiple owners. It sets expectations and provides a clear framework for running the business. By including these key elements in the agreement, partners can prevent conflicts and ensure the company`s success for years to come.