A Partnership Agreement serves as a formal, written contract that delineates the terms and conditions governing
a collaborative business venture. In a partnership, two or more parties come together to jointly own and operate a
company, sharing the financial gains and liabilities arising from the enterprise.
Such collaborations may occur among individuals, social acquaintances, or family members with the intent to
establish a profitable business entity. Unlike corporations or limited liability companies, partnerships often
do not require formal registration procedures.
Consequently, a well-crafted Partnership Agreement becomes invaluable, explicitly signaling the parties' intent to
engage in a legitimate partnership and providing a comprehensive framework for its operational mechanics.
What is 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 partner 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
Articles of Partnership
50/50 Partnership Agreement
Without this partnership agreement, your region’s default partnership rules will continue to apply. 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 easily edit it on PDF Reader Pro.