Here's a great article at theWall Street Journal . It's basically the talk I give to all of my clients who come in to consult with me about setting up a business with partners. Especially important are: Knowing your partner well. Making sure you like and trust your partner. Having the same goals as your partner. Getting the agreement down in writing FIRST. I know that sometimes its uncomfortable bringing up subjects that you may not agree about, but those are the most important things to talk about because thats exactly where the disagreements will fester and grow.