Organization Partner

A partnership agreement is a relationship between individuals or organizations. Parties involved should be in close cooperation and share responsibilities. A partnership agreement isn’t necessarily a legal contractual relationship but a relationship where you come in union to accomplish common goals and purposes that will benefit both parties. A partnership agreement is basically one where you both try striving to meet success.

These partnerships could include federal/state/local government, educational institutions, trade associations, or other organizations. A partnership is defined as a “working relationship” which means mutual participation and joint interest.

Partnership agreements are a good way to achieve goals that would otherwise be to far out of your reach. When people and/or organizations come together you can share responsibility and therefore focus harder on things you feel need the most attention. Partnerships can be effective ways to re-stabilize unorganized businesses, expand, go global, go national, increase customer base, increase sales through referrals, provide even more services your customers may desire, and much more.

Often times partnerships are used when resources are limited, partnerships are a way of maximizing your resources to achieve goals and strengthen existing relationships through consumer protection, etc.

Also, companies in need of skilled, talented workers will often times partner with a company/organization that has the talented, skilled, experienced employees you need to train workers and keep your business on the right track.

The requirements to file and sign a partnership agreement form usually are:

- You both must be at least 18 years old.

- Both partners must be present when filing the partnership agreement

- A legal picture I.D. card is required from each partner.

- If you had a previous partnership you must file a notice for ending the partnership with the County Clerk or Notary Public before you can file a new partnership agreement.

- Usually there’s a filing fee of 10-50 dollars often times and they usually accept all forms of payment.

Many law firms understand the importance of building a diverse workforce. The changing demographics within the United States have signaled to firms that diversity is an important goal that will affect the firm’s viability and ultimately the bottom line.

In response, many firms have launched diversity recruitment efforts designed to bring more women and attorneys of color into the firm. The problem has been that within a few years of being hired attorneys that qualify as “diverse” leave the firm in search of more inclusive, diverse and culturally competent work environments. Below are some critical reasons why attempts at creating diversity have failed.

1) Lack of Commitment at the top: In order for diversity initiatives to succeed, there must be vigorous support for it at the senior level of the firm or organization. Partners are the change agents of the firm. Committees formed to address issues of diversity, recruitment, retention and cultural competence must be lead by key leaders within the firm.

2) Failure to assess the firm’s environment: Assessment is critical in helping to create and implement an effective diversity initiative plan. It’s critically important to understand an organization’s level of development before launching a diversity or cultural competence initiative. Firms must be prepared to assess their hiring practices, overall culture, interpersonal relationships, views about diversity and promotion practices

3) Over emphasis on recruitment and hiring: Relying on recruitment as a primary means of creating diversity will prove to be an ineffective strategy. Instead, recruitment is simply an initial step in the overall process. Firms must ensure that their work environment can support a diverse staff. Next, firm-wide, culturally effective systems and practices must be implemented in order to prevent excessive attrition among women and attorney’s of color. Retention and development of a strong and diverse pool of attorneys depends upon the firm’s ability to create a work environment that values and leverages difference, mentors cross culturally and consistently measures and monitors the progress and development of all attorneys.

4) Failure to include diversity objectives in the organization’s strategic plan: Many firms fail to include diversity goals into the firms overall vision and plan for growth and development. Organizational change is a process and in order to successfully reach objectives related to diversity, goals must be included in the firm’s strategic plan. Firms successful in building a diverse workforce have implemented specific strategies in the areas of hiring, retention, professional development, communication, promotion, mentoring etc.

5) Lack of understanding of diversity phases: Many firms fail to view the creation of a diverse organization as a developmental process. Diversity and cultural competence develops along a continuum. In the early stages of the process, firms need to define diversity, identify problems and opportunities, provide education and awareness, and develop a leadership plan along with the business case for diversity, a clear vision and well defined goals. Finally firms must understand that building a diverse and inclusive work environment is an ongoing effort.

6) Ignoring the importance of training and development: Cultural competence and diversity training with a focus on building awareness and alliances vs. “blaming and shaming” is critical to creating a productive, diverse and inclusive workforce. Staff must have the opportunity to explore current views and misconceptions around issues of inclusiveness, race, gender, sexual orientation, religion and individuals with physical challenges. Failing to link training and development with firm-wide diversity objectives will result in the firm’s inability to build an inclusive and diverse organization.

7) Cultural Incompetence: Many firms communicate a desire to build an inclusive and diverse work environment yet they still place a high value on “sameness”. Whether consciously or subconsciously this value for sameness is communicated to others in the firm. Instead, firms need to develop a high level of cultural competency. Cultural competence requires that organizations:

o Have a defined set of values and principles and demonstrate behaviors, attitudes, policies and structures that enable them to work effectively cross-culturally.

o Have the capacity to (1) value diversity, (2) conduct self-assessment, (3) manage, appreciate and leverage the dynamics of difference, (4) acquire and institutionalize cultural knowledge and (5) adapt to diversity and the cultural contexts of their employees and the clients and communities they represent. Think of cultural competence as fertile ground upon which to plant, grow and develop a successful recruitment, retention and firm wide cultural diversity program. Without the necessary foundation, efforts to build a diverse team of attorneys will prove to be unsatisfactory.

Contact Info:

Jatrine Bentsi-Enchill, J.D., CPCC

704 814 6135

JBE@EsqDevelopmentInstitute.com

Hi everyone. Remember that when setting up your company, you face a number of crucial decisions. In this article we’ll address how to choose the various forms of business organization (also known as company structures) and help you determine which one is right for you. We’ll also look at how to create and implement a stock option program. Bear in mind that the majority of these issues will be handled by your attorney and controller, which are two functions you will outsource. You must, however, choose the structure best for you and your company, at least initially. As your business evolves, so will your company’s needs. Your goal in the beginning is to create a basic understanding of the structures available to you.

As I outline the proprietorship, partnership, and corporate forms of business, and describe the benefits, risks, & basic tax aspects of various organizational forms, please keep in mind that you will need to discuss this information with your attorney and accountant. I don’t profess to be an expert in knowing the exact structure that will be best for you. You’ll want legal and accounting advice based on your financial and tax profile to make this decision. Having said that, these are the basics to keep in mind as you go forward. There are many ways to organize your business. You can use Proprietorships, Partnerships-both General and Limited, Corporations-both C corporations and S (or Subchapter S) corporations, and Limited Liability Companies (or LLCs) or “Hybrids” of these company types. Let’s look at the definition as well as pros and cons of each.

Proprietorships. A Proprietorship is a business venture owned by an individual who is personally liable for the venture’s liabilities. Many entrepreneurs start out as sole proprietorships. I don’t like this company structure because as I stated moments ago, you will be personally liable for your company’s liabilities. You’ll have unlimited liability, meaning your personal obligation to pay the venture’s liabilities are not covered by the venture’s assets. Yuck and ouch. First, your company must be a separate entity. It needs to start developing its own credit (do this by getting a VISA or Amex small business credit card and/or credit line at your local bank) plus it needs to take care of its own liabilities. You can’t grow a business with this structure-it is too risky.

Partnerships. A Partnership is a business venture owned by two or more individuals who are jointly and personally liable for the venture’s liabilities. With Joint Liability legal action treats all partners equally as a group. Joint and Several Liability allows subsets of partners to be the object of legal action related to the partnership. This is an okay structure for certain types of ventures, but I still prefer having your company be less tied to yourself as an individual.

Limited Partnership. A Limited Partnership allocates liabilities in a partnership to the amount of each partner’s equity capital contribution to the partnership. This means that if you own 50% of the company, you have the burden of 50% of the liabilities, and the remainder are allocated to your partners pro rata based on their ownership percentage. Better, but still too personal for my taste!

Corporations. Ahhh… my favorite category of company structure. Here’s why.

Corporation: a legal entity that separates personal assets of the owners (shareholders) from the firm’s assets. Nice and tidy. Limited Liability (aka LLC): creditors can seize the corporation’s assets but have no recourse against the shareholders’ personal assets. Good. An LLC is a business organization owned by “members” (shareholders) with limited liability. The major Incentive for organizing as an LLC is that earnings can be taxed at the personal income tax rates of the members. S Corporation: provides limited liability for shareholders plus corporate income is taxed like personal income to the shareholders. Good.

Tomorrow we’ll go over some of the criteria for choosing which type of set up is best for your company.

To get great tools on how to create a strong foundation for your business’ future, feel free to join my Facebook Group, Business Renegades: http://tinyurl.com/6xos94