Collaborating with other entrepreneurs in a legally correct manner

Collaborating legally with other entrepreneurs starts with sound written agreements: from a partnership agreement to the right legal structure, a clear lease agreement, and a confidentiality agreement. Without these agreements, you run risks regarding liability, costs, and confidential information. Below, you can read about the different forms of collaboration and what you need to arrange for each situation.

Good agreements for a successful collaboration

In the case of an (occasional) collaboration, it is important that you make clear agreements and record them in a contract. Consider agreements regarding:

• who bears which risks;
• how the work is divided;
• how much each party invests;
• What happens if a partner fails to keep their agreements.

The most logical choice is a collaboration agreement. However, other forms are also possible: one self-employed professional can hire another via a contract for services, you can work with franchisees, or grant specific licenses (for which other agreements are required).

Which legal form is suitable for intensive collaboration?

If you work together frequently, it may be wise to start a company together. Possibilities:

• various self-employed professionals who wish to remain independent can become employees of a joint limited liability company;
• A general partnership or limited partnership can also be a good solution.

The main difference lies in liability: with a BV, you are less likely to be held personally liable, whereas with a VOF or Maatschap, you can be held liable relatively quickly — even for each other. Each legal form has its own advantages and disadvantages, including from a tax perspective. If in doubt, seek proper advice.

Sharing a building: pay attention to joint and several liability

You can share a building, but even then, good agreements are essential. If you rent together from a single landlord, they often require the tenants jointly and severally liable for the debt. If the other party fails to pay, you must pay their share — such a clause can have far-reaching consequences. If you own a building yourself, you can rent out a part to another entrepreneur. In both cases, a good lease agreement important.

Protect confidential information when collaborating

When collaborating, you sometimes share confidential information. Protect this with a confidentiality agreement. In it, the other party declares not to leak the confidential information, it is clearly defined what constitutes confidential information, and sanctions can be included, such as a penalty clause.

Frequently Asked Questions

Which agreement do I need to work together?

Often a collaboration agreement, but depending on the situation, a contract for services, franchise agreement, or license agreement may also be appropriate.

Am I liable for the mistakes of my business partner?

That depends on the legal form and the agreements. In a general partnership (VOF) or professional partnership, you can relatively quickly become liable for each other; in a private limited company (BV), this is less likely to be the case. Good agreements limit the risk.

What does joint and several liability mean when renting jointly?

That you could be liable for the entire rent arrears, including the portion of a co-tenant who fails to pay. Have such a clause checked in advance.

Is a confidentiality agreement really necessary?

As soon as you share confidential information, this is highly recommended. It clarifies what is secret and links sanctions to it, such as a fine for violation.

Collaborate without unnecessary risks?

Collaboration can yield significant results, provided the right agreements are correctly documented. We advise you on the documents you need and draft them for you. Is a landlord or partner proposing a contract? Have one of our legal experts review it first.

View our collaboration agreement or schedule a no-obligation introductory meeting.