What's the Partnership Agreement?
A Partnership Agreement is an internal written document detailing the terms of a partnership. A partnership is a business arrangement where two or more individuals share ownership in a company and agree to share in the profits and losses of their company. Any arrangement between individuals, friends, or families to form a business for profit creates a partnership. As there is no formal registration process, a written Partnership Agreement shows a clear intention to form a partnership. It also sets out in writing the nuts and bolts of the partnership.
What are included in a Partnership Agreement?
A simple Partnership Agreement will identify the following basic elements: Partners: the names of each person who owns the company Name: the catchy new name Purpose: the business of the partners Place of Business: where the partners go to work every day Distributions: how the profits and losses are divided Partner Contributions: how much and what each partners is contributing e.g. cash, a brilliant new idea, industry knowledge, supplies, furniture or a workplace As a reference, this agreement is known by other names: General Partnership Agreement Business Partnership Agreement Partnership Contract Articles of Partnership 50/50 Partnership Agreement
Without this partnership agreement, your region’s default partnership rules will continue applying. For example, if you do not detail what happens if a partner leaves or passes away, the state may automatically dissolve your partnership based on its laws. If you want something different than your state’s de facto laws, an agreement allows you to retain control and flexibility on how the partnership should operate. So a partnership agreement works a lot when you build a commercial cooperation. Download this partnership agreement now and edit it with ease on PDF Reader Pro.