Document Important Agreements in Writing

"No matter how well you know your business associates, no matter how much you all trust one another, you have to get all important agreements in writing. The fact is, memories fade over time, people remember things differently, and people choose to remember things differently, so the only way to avoid misunderstandings is to memorialize any and all agreements in writing.

Doing so is smart business and no one should be surprised or offended if you insist that your agreement is reduced to a writing...Second, planning for the worst means that you will have the proper insurance...Finally, expecting the best but planning for the worst means that your business will have the proper legal structure. Running your business as a sole proprietorship or partnership puts your personal assets at risk should the business fall on hard times. But incorporating, or starting a Limited Liability Company (LLC), means that business debts do not put your personal assets at risk."

Read more in this USATODAY.com article found via this Business Opportunities Weblog post.