Account
Get our app
Account Sign up Sign in

Make your Free Partnership Agreement

A Partnership Agreement is a contract between one or more businesses or individuals who are choosing to run a business together. Usually, each member will bring to the business initial contributions... Read more

Make document
Sample Partnership Agreement Template
How It Works About Document Related Documents

How It Works

Create your document

Create your document

Answer a few simple questions to make your document in minutes

Save, print & share

Save, print & share

Save progress and finish on any device; download & print anytime

Sign & make it legal

Sign & make it legal

Securely sign online and invite others to sign

Sample Partnership Agreement

Follow our step-by-step process to customize the template.

PARTNERSHIP AGREEMENT


This Partnership Agreement (the "Agreement") is made and entered into this   (the "Effective Date"). The Partners in this Agreement are as follows:


Partner Name


Address


City State


ZIP Code


The Partners to this Agreement agree to the following:


  1. NAME


    This Partnership will be known as (the "Partnership").


  2. THE PARTNERSHIP


    • The Partners wish to become legal partners in business.


    • The terms and conditions of their Partnership will be outlined in this Agreement.


    • If the Agreement is executed, the Partnership will be in effect on .


    • The Partnership will only be terminated as outlined in this Agreement.


    • The Partnership's primary place of business will be , , , .


    • The Partnership will be governed under the laws of the state of .


    • The Partnership's primary purpose is .


    • If applicable, the Partners will obtain any necessary licenses and permits to do business, register its

      Doing Business As Name ("DBA"), and obtain a Federal Employer Identification Number ("EIN").


  3. CONTRIBUTIONS


    The Partners will make an initial contribution to the Partnership as follows:


    • : $


      Contributions will be submitted no later than . All capital contributions are final unless all partners give written consent of withdrawal. All contributions will be deposited into a joint capital account.


  4. INTEREST AND AUTHORITY


    The Partners' ownership interest in the Partnership will be as follows:


    • : %


    • : %


      The Partners' authority will be defined by the following unless otherwise stated in the Agreement: All partners will have an equal vote. No Partner is authorized to act on their own in obtaining contracts, financial, or other obligations on the Partnership. Decisions will be based on a majority of equal votes.


      The Partnership designates as the "Partnership Representative" as defined in 26 U.S. Code § 6223. The Partnership has chosen an entity to act as the Partnership Representative, and thus has elected as the "Designated Individual". The Partnership may replace the Partnership Representative or Designated Individual at its own discretion when filing its annual tax return.


  5. COSTS


    The Partners will share costs according to the following percentages:


    • : %


    • : %


  6. PROFITS


    The Partners will share the net profits of the Partnership according to the following percentages:


    • : %


    • : %

      The Profits will be accounted by and distributed on the of the month according to the above percentages after the costs of the Partnership have been paid according to the above cost percentages.


  7. SALARY


    All Partners must give their unanimous consent if a permanent salary is to be established and their unanimous consent for the amount of salary to be given to each Partner.


  8. PARTNER ROLES


    • Management Roles:


    • Work Hours: Each partner agrees to work 0 hours per week, excluding vacation weeks or weeks with a federal holiday.


    • Vacation: Each Partner will be granted 0 vacation days per year.


  9. ACCOUNTING


    • All accounts related to the Partnership including contribution and distribution accounts will be audited once per year.


    • All Partners will maintain a joint contribution account. All Partners will maintain a joint distribution account. Partners will keep accurate and complete books of account for all accounts related to the Partnership. Any Partner, whether majority or minority, will be allowed to review all books of account at any time they request.


    • Each Partner will be responsible for his or her own taxes on any distributions made.


    • Accounting records will be kept on a accrual basis.


    • The fiscal year will be complete on the last day of  of each year. All Partners will present their position on the state of the Partnership within two weeks of the completion of each fiscal year.


    • The following partners will be able to sign checks from any joint Partner account:


    •           

  10. NEW PARTNERS


    The Partnership will amend this agreement to include new partners upon the written and unanimous vote of all Partners.


    The name of the Partnership may be amended if a new Partner is added to the Partnership upon the written and unanimous vote of all Partners.


  11. WITHDRAWAL OR DEATH


    The Partners hereby reserve the right to withdraw from the Partnership at any time. Should a Partner withdraw from the Partnership because of choice or death, the remaining Partners will have the option to buy out the remaining shares of the Partnership. Should the Partners agree to buy out the shares, the shares will be bought in equal amounts by all Partners. The Partners agree to hire an outside firm to assess the value of the remaining shares. Only upon the partners' unanimous agreement will the outside firm's valuation of the shares be considered final. The Partners will have days to decide if they want to buy the remaining shares together and disperse them equally. If all Partners do not agree to buy the shares, individual Partners will then have the right to buy the shares individually. If more than one Partner requests to buy the remaining shares, the shares will be split equally among those Partners wishing to purchase the shares. Should all Partners agree by unanimous vote, the Partnership may choose to allow a non-Partner to buy the shares thereby replacing the previous Partner.


    If no individual Partner(s) finalize a purchase agreement by days, the Partnership will be dissolved.


    The name of the Partnership may be amended upon the written and unanimous vote of all Partners if a Partner is successfully bought out.


  12. DISSOLUTION


    Should the Partnership be dissolved by unanimous vote, the Partnership will be liquidated, and the debts will be paid. All remaining funds after debts have been paid will be distributed based on the percentage of ownership interest outlined in this Agreement.


  13. AMENDMENTS


    • Amendments may be made hereto upon the unanimous and written consent of all Partners.


    • Amendments must be expressly written and have the original signatures of all Partners.


    • All amendments, notices, requests, claims, demands and other communications between the parties shall be in writing. All such written communications shall be given (i) by delivery in person, (ii) by a nationally recognized next day courier service, (iii) by first class, registered or certified mail, postage prepaid, (iv) by facsimile or (v) by electronic mail to the addresses of the parties specified in this Agreement or such other addresses specified in writing. All notices shall be effective upon (i) receipt by the party to which the written communication is given, or (ii) on the 5th day following mailing, whichever occurs first.


  14. DISPUTE RESOLUTION

The parties will attempt to resolve any dispute arising out of or relating to the Partnership or this Agreement through friendly negotiations amongst the parties. If the matter is not resolved by negotiation, the parties will resolve the dispute using the below Alternative Dispute Resolution (ADR) procedure.


Any controversies or disputes arising out of or relating to this Agreement will be submitted to mediation in accordance with any statutory rules of mediation in the state of . If mediation is not successful in resolving the entire dispute or is unavailable, any outstanding issues will be submitted to final and binding arbitration under the rules of the American Arbitration Association. The arbitrator's award will be final, and judgment may be entered upon it by any court having proper jurisdiction within the state of

.


IN WITNESS WHEREOF, this Agreement has been executed and delivered in the manner prescribed by law as of the Effective Date first written above.


By: Date:


Making a Partnership Agreement

  • What is a Partnership Agreement?

    A Partnership Agreement is a contract between one or more businesses or individuals who are choosing to run a business together. Usually, each member will bring to the business initial contributions such as capital, intellectual property, real property, or manufacturing space.

    Partnership Agreements define the initial contribution and future contributions that are expected of the partners. The document also outlines how business decisions are made, how to decide partnership percentages, how the business will be managed, and more.

  • What is a Partnership Agreement for?

    If you are ready to go into business with one or more partners, it may be time to make a Partnership Agreement. With a Partnership Agreement, you can outline the terms of your new business relationship. You will be able to list all partners to the agreement as well as their contribution amounts, ownership interest percentages, cost share, profit share, and responsibilities. This contract can help you outline the terms of your business engagement, how the business will be run, and ultimately how the partnership may dissolve.

  • How do you write a Partnership Agreement?

    It's easy to write a Partnership Agreement using Rocket Lawyer. Just answer a few simple questions and Rocket Lawyer will build your customized contract. As a Rocket Lawyer Premium member, you can access, copy, edit, and email your Partnership Agreement directly from your account. Your document can also be electronically signed or downloaded in PDF or Word format.

  • What should a Partnership Agreement include?

    Before making a Partnership Agreement, you'll need to discuss a few important details with your business partner(s). Here are some examples of information that your Partnership Agreement should include:

    Contact information

    • Contact information for the person organizing the partnership
    • Contact information for the business itself

    Business details

    • Legal name for the partnership as well as the trade or business name if you have one
    • Description of what the business does
    • What date your business will begin operation
    • How many employees you expect to have
    • Expected revenue
    • End date, if applicable

    Partner and personnel details

    • Percentage of ownership for each partner
    • Partner contributions
    • How a partner can leave the company
    • What happens if a partner dies
    • Non-compete requirements
    • Non-partner employee details

    Tax responsibilities

    • Who will be responsible for tax matters
    • When your fiscal year will ends

    Voting rights

    • How voting rights will be distributed
    • How much of a vote is required to make business decisions

    A Partnership Agreement can create significant legal obligations for each partner. With that in mind, it is important to review the document to make sure you agree with all of the details, duties, and procedures specified. A lawyer can help to answer any questions.

    Legal resources for a Partnership Agreement: Uniform Partnership Act (UPA)

  • Why is a Partnership Agreement important?

    A Business Partnership Agreement helps to outline the terms of a new business partnership. Without a Partnership Agreement in place, partners may find themselves in disagreement about how to run the business. A written Partnership Agreement that outlines basic business practices can help to alleviate future conflicts before they start.

    If you have questions about forming a business partnership, ask a lawyer.

Related documents

Ask a lawyer

Our On Call attorneys are here for you.
Characters remaining: 600
Rocket Lawyer On Call® Attorneys

WHY ROCKET LAWYER?

Easy legal documents at your fingertips

Answer a few simple questions to make your document in minutes

Easily customizable
Make unlimited revisions and copies. Sign online. Share and print anytime.
Legal and reliable
Our documents are vetted by lawyers and legal staff, so you can use them with confidence.
Added protection with Document Defense®
If there's a dispute, an On Call attorney can respond on your behalf. Included in your Premium plan.
Try Rocket Lawyer free for 7 days
Make your Premium document today and get back to doing what you love.

Looking for something else?