{"id":53993,"date":"2018-03-14t05:01:26","date_gmt":"2018-03-14t09:01:26","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=53993"},"modified":"2018-03-30t13:21:54","modified_gmt":"2018-03-30t17:21:54","slug":"protect-business-solid-partner-agreement","status":"publish","type":"post","link":"\/\/www.g005e.com\/2018\/03\/14\/protect-business-solid-partner-agreement\/","title":{"rendered":"protect your business with a solid partner agreement"},"content":{"rendered":"
<\/a>plus 6 ways they’ve changed over the years.<\/strong><\/p>\n by marc rosenberg buying a family home is one of the the biggest investment most people make in their lives. and because most of us are not real estate experts, we protect ourselves by engaging an attorney to ensure that the purchase is handled correctly.\u00a0 we don\u2019t hesitate for a moment to invest a few thousand dollars of attorney fees to hire an expert.<\/p>\n more on partnership: <\/b>how business entity type affects partner income<\/a> | what partnership gets you (and doesn\u2019t)<\/a> | 5 cautionary tales in partner compensation<\/a> | partner pay in retirement transition period<\/a> | 23 key provisions in a partner buyout<\/a>\u00a0| management stipends: who, how and why<\/a> | when a firm tanks while a partner soars<\/a> | research results: how firms pay new partners<\/a> | what does buy-in buy?<\/a>\u00a0| how profitability affects income allocation<\/a> | keys to bringing in new partners<\/a> being a partner in a cpa firm should be no different. 30-year income stream at $400,000 per year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $12,000,000<\/p>\n goodwill retirement buyout @ 3 times comp\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 $1,200,000<\/p>\n capital retirement buyout @ 25% of goodwill\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $300,000<\/p>\n total cash flow\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $13,500,000<\/u><\/p>\n if ever there were a no-brainer, it would be to spend a few dollars to protect your $13.5 million investment by seeking the expert advice of an attorney and a consultant to create a partner agreement for your firm.<\/p>\n yet, according to the 2016 aicpa pcps survey, 37 percent \u2013 more than one-third! \u2013 of multipartner firms do not<\/strong> have partnership agreements. (we will use the generic term \u201cpartner agreement\u201d to describe the agreement among a cpa firm\u2019s owners for governing the firm, regardless of whether the legal entity is a partnership, llc, llp, corporation, etc.)\u00a0 based on our experience consulting with cpa firms, i\u2019m certain this 37 percent figure declines as firm size increases, but it\u2019s still in the 20-25 percent range for all substantial firms \u2013 still inexcusable.<\/p>\n many of you reading this are sitting smug and satisfied because your firm has<\/strong> a partner agreement. but merely having an agreement should not make you feel content.<\/p>\n the key question is this: is the agreement properly written and consistent with cpa industry best practices?<\/p><\/blockquote>\n i have read hundreds of agreements in my career, and i must tell you that 50-75 percent are so poorly written<\/strong> they fail to address a dozen or more critically important issues.<\/p>\n why some firms don\u2019t have a partner agreement<\/strong><\/p>\n i see these excuses all the time. many are interrelated:<\/p>\n one final note. it\u2019s incredible how many agreements i have read that are older than dirt, written 10 or even 20 years ago. few things in life remain the same. there have been many changes in partner governance methods and agreements at cpa firms over the years. here are a few examples:<\/p>\n if your firm has a well written agreement, make sure you have a consultant and\/or attorney look it over every two or three years to make sure it is current.<\/p>\n","protected":false},"excerpt":{"rendered":" plus 6 ways they’ve changed over the years.<\/strong>
\npartner agreement essentials<\/em><\/p>\n
\nexclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n
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\nthink about it. based on data from the 2016 rosenberg map survey, here is a rough idea of the value of a partner\u2019s ownership in a $10 million firm:<\/p>\n\n
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\nby marc rosenberg<\/em><\/p>\n","protected":false},"author":1339,"featured_media":52068,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1908,3120,2266],"tags":[],"class_list":["post-53993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-pro-member-exclusive","category-partner"],"acf":[],"yoast_head":"\n