A Business Partnership Agreement is a legal document that is signed between two or more parties (“partners”) that wish to enter into an agreement to do business as one single entity. This business entity — a partnership entity between the two or more individuals, functions as a legally recognized business entity. In a business partnership, each of the partners share the collective profits and losses of the business. Traditionally, each partner in a partnership entity is liable for all the debts and obligations of the business partnership, but there are some modern legal acts that offer limited liability partnerships as well, which are formed using a limited partnership agreement.
The General Partnership Agreement is a legal document that defines the legal structure of the partnership entity. It outlines all the terms, conditions, responsibilities, ownership shares and shares of the profits and losses in the business, and is essentially the rulebook by which the business entity functions.
If you are someone who wants to set up and get started with a partnership business, you must learn how to write a partnership agreement form and register a business. Understanding the format of the business partnership agreement is vital before you enter sign a partnership agreement form.
Why do you need a business partnership agreement?
A business partnership agreement ensures all parties understand their rights and responsibilities. It can help both parties manage the business, distribute profits and losses, and handle changes.
If you are someone who wants to set up and get started with a partnership business, you must learn how to write a partnership agreement form and register a business. Whether you create a small business partnership agreement or a complex multi-partner arrangement, understanding the format of the business partnership agreement is vital before you sign a partnership agreement form.
What should be included in a business partnership agreement?
When creating a business partnership agreement, it is essential to have details regarding the following topics on hand:
- Capital contributions – how partners will contribute money or assets to the partnership;
- Profit and loss distribution – how the profits and losses of the business will be distributed among the partners;
- Management and voting – how the decision-making process will take place;
- Partnership tax elections – how the partnership will handle tax matters;
- Partnership withdrawal – how a partner can exit the partnership (the notice period, the valuation of the partner’s interest, and any restrictions on withdrawal);
- Partnership dissolution – how the partners proceed with dissolving the partnership (steps for winding up the business, distributing assets, and settling liabilities).
How to Fill a Business Partnership Agreement Form
A business partnership agreement template has the following details and contents that you need to fill out before you sign the document.
- Name of the Partners
- Name of the Partnership
- Business Type of the Partnership
- Formation Date of the Partnership
- Included Shares & Capital by each Partner
- Banking Arrangements and Financial Terms
- Voting Arrangements and Management
Additionally, a joint partnership agreement form may also include the possibility to define additional partners with their respective shares and capital in the future, as well as the ability to define management roles within the partnership.
Every business partnership agreement example that you may come across will be unique in its own way, with its own set of clauses and terms mutually agreed upon by the founding partners. The partnership agreement form sample that we have included below for free download contains a basic form of business agreement. You should download and edit the contents of the general partnership agreement form pdf using PDF Expert — the best PDF Editor for Mac. Download PDF Expert for Free to get started with this Free PDF business partnership agreement template.
Simple Partnership Agreement Form Sample
* The templates here are provided for reference only and you should always talk to a professional for all legal matters