BeachFleischman PC

The partnership agreement is the road map that will guide the partners and investors through the most important decisions about how they operate the partnership It also tells each partner what to expect in terms of his or her obligations under the agreement

For example, capital calls are common in development partnerships Real estate partners need to know when and how much additional capital they will be expected to inject into the partnership—and the consequences of not doing so (i e , dilution of profit and loss percentages)

Some of the crucial items that should be addressed in a partnership, management or operating agreement include:

• How income will be allocated
• When capital contributions are expected
• When and how partners can sell their interests
• At what prices partners can sell their interests
• To whom partners can sell their interests

How the Right Accounting Firm Can Help

Leaving out important elements of an agreement—or worse, not having an agreement at all—is a sure way to court trouble in the form of disagreements between partners, unwelcome tax liability and even exposure to liability

Because every agreement is unique, savvy real estate investors seek insight from tax advisors who have seen hundreds or thousands of agreements before—and who know the potential tax implications of each type of agreement BeachFleischman CPAs are knowledgeable real estate tax advisors For more than 15 years, we have been advising clients on every type of real estate entity, including: Because of this depth of experience, we know the risks and pitfalls and can help you avoid those future problems

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