A business partnership agreement, also known as a partnership contract or articles of partnership, is a legally binding document that determines the roles and responsibilities between two individuals or entities acting as business partners. For partnership agreements to be enforceable, they should contain specific elements and provisions that comply with local, state, and federal contract law.
There are a few types of partnerships from a legal and taxation standpoint. The structure you and your partners use will vary by industry, investment strategy, willingness to take on personal liability, relationship strength, individual backgrounds, and location. Consider your options prudently before making a decision.
The four main types of partnerships include:
This section of the agreement details the amount of capital each partner is responsible for bringing to the table to support the partnership.
This section outlines how profits and losses will be distributed among the partners resulting from the partnership.
This section outlines how decision making and the general management of the partnership will be handled.
This section outlines the process by which voting will be handled on issues as the come up in the partnership.
This section outlines the process by which new partners can be admitted to the partnership, should new partners be considered in the future.
This section outlines the procedures for withdrawing a partner, which may happen due to death or the incapacity of a partner.
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