When entering into a business partnership, it's essential to create a Partnership Agreement contract, which defines all the terms and conditions of the relationship. Your Business Partnership Agreement lists all of partners to the agreement, and should cover the following issues:
- name of the partnership
- goals of the partnership
- duration of the partnership
- contribution amounts of each partner (cash, property, services, future contributions)
- ownership interests of each partner (assets)
- management roles and terms of authority of each partner
- accounting obligations of each partner
- distribution of profits and losses between the partners
- salaries, work hours, sick leaves and vacation times of each partner
- permissions and restrictions on any outside business activity
- partners' buyout options
- process for adding new partners or removing original partners
- terms and conditions of termination of the partnership
You should include as many contingencies as you can, so that you can refer back to the Partnership Agreement in any situation. It's easy to create your Partnership Agreement online with RocketLawyer.com. You can even use E-Signing so all of the partners can execute the Partnership Agreement electronically. If you need more help, find a business lawyer in your area.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.