Partnerships seem like great ideas when they get started.  However, many people do not take the time to formalize the nature of the partnership responsibilities and rights, which may lead to problems down the road.  Many people will form a partnership by filling out a form appropriate to start a partnership and filing it with the Secretary of State, but they fail to execute an operating agreement for their entity or to prepare and execute employment agreements between themselves and the partnership.  Most people in partnerships do not know that just being a partner does not mean that you have the right to work for the partnership.  A partnership agreement, without any other documentation such as an employment agreement or guaranteed payments agreement in place, simply entitles the individual who is a partner to own a part of the partnership, but does not guarantee employment or payment for any services performed for the partnership.  We have had instances in our practice where, in a three partner partnership, two partners conspired to oust the third, thereby resulting in the third having no compensation and no job while still being a minority owner in a partnership.  To avoid issues like these, make sure before going into any business venture with another individual that you consult with a professional and that you have all of the documents that are necessary to protect your rights.