Operating & Partnership Agreements for Vets

Clear, well-drafted agreements are essential to the long-term success of any veterinary practice with multiple owners. Whether you’re starting a new clinic with a partner or bringing on a new associate with an equity stake, operating and partnership agreements lay the groundwork for decision-making, profit-sharing, dispute resolution, and more.

At Mahan Law, we help veterinarians protect their interests and avoid costly misunderstandings by drafting and reviewing comprehensive operating and partnership agreements tailored to the unique dynamics of veterinary businesses.

Why These Agreements Matter

When a veterinary practice has more than one owner, misunderstandings can arise over responsibilities, ownership stakes, or how major business decisions should be handled. Operating agreements (for LLCs) and partnership agreements (for general partnerships or other business structures) serve as the rulebook for the practice, providing clarity and stability on a range of issues, including:

Ownership percentages
Voting rights and decision-making authority
Financial contributions and profit distributions
Management roles and duties
Buy-sell provisions and exit strategies
Dispute resolution procedures

Without a clearly written agreement in place, the business is subject to default state laws that may not reflect your intent or protect your investment.

Customized Agreements for Veterinary Clinics

Veterinary practices face unique challenges that general business agreements may not address. Mahan Law takes a veterinary-focused approach, ensuring your agreement reflects the nuances of operating a clinic, including:

Licensing requirements and professional restrictions
Practice management responsibilities
Allocation of equipment and facilities
Associate ownership or buy-in terms
Non-compete and non-solicitation clauses
Continuity planning in the event of death or disability

Whether you’re launching a new venture, onboarding a new partner, or restructuring an existing practice, our team will draft or review agreements that reflect your goals and protect your practice.

When to Update or Review an Existing Agreement

Even if you already have an operating or partnership agreement in place, it may be time for a review. Your agreement should evolve as your practice grows. Situations that often trigger the need for an update include:

Adding or removing a partner or member
Significant changes in revenue, size, or staffing
Opening new locations or merging with another practice
Changes in state law or regulatory compliance requirements

We work with veterinary clients nationwide to ensure their agreements remain up-to-date, enforceable, and aligned with their current business needs.

Preventing Disputes Before They Begin

One of the most essential roles of a strong agreement is dispute prevention. Misunderstandings between partners can damage the practice’s reputation and revenue. A comprehensive agreement helps manage expectations and provides a clear process for resolving disagreements that may arise.

Our veterinary legal team ensures your agreement includes:

Defined decision-making authority
Dispute resolution procedures (e.g., mediation or arbitration)
Exit clauses and buyout formulas
Terms for dissolving the partnership, if necessary

By planning ahead, you can avoid costly legal battles and keep the focus on patient care and business growth.

FAQs About Operating and Partnership Agreements for Vets

What should be included in a veterinary partnership agreement?

A veterinary partnership agreement should outline ownership shares, roles and responsibilities, how profits are distributed, exit procedures, and mechanisms for dispute resolution. It should also address practice-specific issues, such as licensing, medical decision-making, and restrictive covenants.

Do I need an operating agreement if I’m forming a single-member LLC?

Yes. While not always legally required, having an operating agreement—even as a sole proprietor—helps legitimize your business and clarify its operations. It can also protect you in the event of liability claims or when applying for financing.

Can I add a new partner later?

Yes, but your existing agreement should outline the process, including valuation methods and the required votes. If not, Mahan Law can help you amend your agreement or draft a new one to accommodate growth.

What happens if a partner wants to leave the practice?

A well-drafted agreement includes a buy-sell clause that lays out the procedure and financial terms for a partner’s exit. Without this clause, the departure can become messy and disruptive.

Take the First Step Toward a Stronger Partnership

Whether you’re starting a veterinary clinic or updating your business structure, clear and enforceable agreements are essential. Mahan Law helps veterinary professionals create strong foundations that support long-term success.

Operating and Partnership Agreements