Partnership agreement is very important in running a partnership business. This agreement is a contract between partners in a partnership which sets out the terms and conditions of the relationship between the partners, including percentages of ownership and distribution of profits and losses, description of management powers and duties of each partner, term (length) of the partnership, how this partnership can be terminated and how a partner can buy his/her share of the partnership.
A partnership agreement should be prepared at the start of a partnership. An attorney should help you with the partnership agreement, to make sure you include all-important “what if” questions and avoid problems when the partnership ends.
Make sure your business runs smoothly when you enter into a partnership agreement with one or more individuals with this partnership agreement template. Avoid potential conflict by drafting a detailed and complete agreement of what is expected of the partners and how the business will be run under the new partnership. The partnership agreement should cover who the partners are, their capital contributions, their rights and responsibilities, and what will happen if and when they decide to leave the partnership.
The only disadvantage to having a partnership agreement is that you might have language that is unclear or incomplete. A DIY partnership agreement risks not getting the wording right, and a poorly worded contract is worse than none at all.
Getting a legal help with the process of preparing your partnership agreement seems like it’s an expensive waste of time. It’s not. Remember, if it is not in writing, it doesn’t exist, so putting every possible situation or contingency into a partnership agreement can prevent expensive and time-wasting lawsuits and hard feelings between the partners. Our experienced legal team is here to help you in preparing a partnership agreement for you.