A partnership agreement is a legal document that outlines the terms and conditions of a business partnership. It`s a crucial step in starting and running a successful business with a partner, ensuring that everyone is on the same page and has a clear understanding of their responsibilities and obligations. To help you create your partnership agreement, we`ve prepared a partnership agreement form example to guide you through the process.
Partnership Agreement Form Example
Article I: Partnership Purpose and Name
The purpose of this partnership is to conduct a business in [insert the nature of the business]. The name of the partnership is [insert the name of the partnership].
Article II: Principal Office
The principal office of the partnership shall be located at [insert the physical address of the partnership].
Article III: Duration
The partnership shall begin on [insert the date the partnership commences] and shall end on [insert the date the partnership ends] unless extended by mutual agreement.
Article IV: Capital Contributions
The initial capital contribution of each partner shall be [insert the amount of the initial capital contribution]. Additional capital contributions may be made by the partners as the partnership requires.
Article V: Profits and Losses
All profits and losses of the partnership shall be divided equally between the partners. The profits and losses shall be allocated according to the partners` respective ownership interests.
Article VI: Management and Control
The management and control of the partnership shall be vested in [insert the managing partner or all partners]. Decisions shall be made by a majority vote of the partners, and the managing partner shall have the final decision-making authority in case of a tie.
Article VII: Withdrawal of Partners
A partner may withdraw from the partnership at any time upon giving written notice to the other partner(s). The withdrawing partner shall receive the value of their capital contribution as of the date of withdrawal.
Article VIII: Dissolution
The partnership shall dissolve upon the death, withdrawal, or bankruptcy of a partner, unless all remaining partners agree to continue the partnership. The assets of the partnership shall be liquidated and distributed according to the terms of this agreement.
Article IX: Governing Law
This partnership agreement shall be governed by and construed in accordance with the laws of the state of [insert the state in which the partnership is located].
Conclusion
Creating a partnership agreement is essential to protect your business interests and ensure a successful partnership with your partner. The above partnership agreement form example is a great starting point for drafting your own partnership agreement. However, we recommend consulting with a legal professional to ensure that your partnership agreement complies with state laws and covers all necessary areas of your partnership.