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Silent Partnership Agreement Basics

A Silent Partnership Agreement allows a silent partner to share in the business' gains and losses, but maintain a more hands-off approach when it comes to the day to day management of the company. The addition of a silent partner can be great for you or your business; it can provide a new infusion of capital and an extra person to bounce ideas off of. Despite the benefits, however, there are still a lot of details that need to be worked out - a Silent Partnership Agreement helps define all the terms your agreement.

Use the Silent Partnership Agreement document if:

  • You're welcoming a silent partner to your company.
  • You are a Silent Partner entering into a business.
  • You manage a business that has silent partners.

Entering into a partnership is a big deal, but a Silent Partnership Agreement can help make things easier if there are silent partners involved. Who's responsible for management? What percentage of the business does the silent partner own? How do you want to handle liabilities? There are a lot of things to figure out. Anytime a new partner comes into the picture, silent or otherwise, it's important that everyone's on the same page. A silent partner is unique; they might not have the same kind of responsibilities as everyone else and their privacy is very important. Make this new partnership work; creating a Silent Partnership Agreement can help every partner, and the business, succeed.

Sample Silent Partnership Agreement

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