How Do Potential Partners Determine the Value of Non-Cash Investment into a Partnership?

The monetary value of each partner’s “sweat equity” or other non-cash contribution to the Partnership can only be determined by the parties involved. The partners must make such a determination through their own internal negotiations. Outside counsel can be consulted to help make a fair determination, but in the end only the potential partners can agree as to what is suitable to their business arrangement.

Once that determination is made, the parties involved can easily create a valid Business Partnership using the legal software forms detailed at Standard Legal’s General Business Partnership Agreement page.