No matter the type or size of a company that is set up in Illinois, it is a good idea that business owners set up important contracts and agreements in writing. This is considered to be a smart company practice due to the fostering of mutual understanding and communication during the initial stages of starting a business. Written agreements help to clearly set out the expectations, duties and limitations for each business partner, which can provide a foundational resource during the running of the company as well as at the dissolution stage.
Business partners who are new to working together can especially benefit from sitting down together and delineating important management duties from the outset of the venture. Forbes published a useful article highlighting particular areas of business which may be overlooked or misunderstood by business partners and therefore improved by discussing a formal written agreement before a disagreement occurs. It can be helpful for entrepreneurs or small business owners to recognize that though their companies may not operate at a corporate level, they can benefit just as much from putting agreements in writing.
A 2019 academic report presented at the 10th European Conference on Intangibles and Intellectual Capital underscores the value of business partnerships across a variety of contemporary industries, all of which are bolstered by written partnership agreements between business leaders. A written agreement can foster trust and collaboration not only between business partners within one company but also within the greater economic sphere. This can be crucial for the developmental success of a company in reaching targets as well as creating necessary innovation for better work products and company reputations.
