I completely agree on getting all of the proper paperwork in place. This is the case, regardless of whether the partners you choose to work with are complete strangers, or if they are friends and / or family members. When initially getting a business up and running, most people are excited about moving forward, and they don’t usually anticipate that things will go wrong. Unfortunately, things can very much go wrong!
Making everything “legal” can go a long way in protecting everybody’s interests – including financial interests. It can also sometimes act as a “go between” when it is time to let someone go. That way, it can sometimes make it seem less personal, and more business.
In addition, having all of the i’s dotted and t’s crossed with legal paperwork may also help to protect you in the event that you encounter wrongdoing by one (or more) of the other business partners or associates. In this case, it may even help to prove your point in court.
In any case, while it may be somewhat time consuming, and costly, to have legal paperwork drawn up, it can be very well worth it down the road.