1. Don’t form an LLC or incorporate. Make sure you and your partner have all the personal liability legally possible.
2. Don’t have any difficult conversations with your partner. Leave important global issues with your partner unaddressed so that you can fight over them later when you have less time and more stress.
3. Agree to decide everything 50/50. Ensure that basic disagreements will lead to virtual deadlocks and increased animosity between you and your partner.
4. Don’t write out your partner agreement. Leave your respective understandings of how the company is to be operated and managed to selective recollection and incomplete facts.
5. Don’t protect your intellectual property. Help ensure that another company can take your ideas and implement them successfully.
6. Don’t create formal employment contracts. Increase the chances your employee will despise you and your company when he or she disputes your vacation policy. Also helpful if you want to incur the transaction costs of hiring and training another employee.