Partnership deal template

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FirstName] [Partner 2. LastName] [Partner 2. LastName] of [Partner 1. Company] of [Partner 1. StreetAddress] [Partner 1. City] [Partner 1. State] [Partner 1. PostalCode] and [Partner 2.

LastName] of [Partner 2. Company] of [Partner 2. StreetAddress] [Partner 2. City] [Partner 2. What about spending?

This section of your agreement should cover these issues. Most agreements include something called a buy-sell agreement. This allows a partner who has died or become disabled to be bought out of the partnership. It may also be a good idea to include a key person insurance provision in your partnership. This insurance policy can keep your business afloat if a major partner dies.

You must agree to the procedure for bringing in a new partner. This can be as simple as a majority vote. You may also outline circumstances where existing partners can veto a new partner. This section allows your business to grow and add new members as needed.

A partnership agreement also needs to describe how the business can be sold. This can be done as part of the before mentioned buy-sell agreement. Make sure all partners agree with the details in this section, as selling a business is the cause of many partnership disputes.

There are many ways to write a partnership agreement. Basic partnership agreements are usually available online. You can review these documents and make adjustments as necessary.

You can also hire an attorney. An attorney will sit down with all partners and help them construct the agreement. If you use a template, you should always have your agreement reviewed by an attorney before signing.

Writing a partnership agreement can be difficult. They cover a lot of important information necessary for the success of your business.

Make writing your partnership agreement easier by hiring an attorney from UpCounsel. The UpCounsel marketplace has experienced and knowledgeable legal professionals who can easily help you write your partnership agreement. Post your job today and get started writing your partnership agreement with UpCounsel. Create your profile today and gain access to free marketing and practice management tools.

Once your profile is complete, you will be reviewed for the UpCounsel Marketplace where approved attorneys can find and manage new or existing clients, backed by the UpCounsel guarantee.

If you do not see an email from UpCounsel in the next few minutes, please check your spam box. Add: noreply upcounsel. This will help ensure future email delivery. Partnership Agreement Template With this general partnership agreement template, you'll set the expectations and terms of your partnership with your business partner.

Share this document Download for free. Need to connect with a business formation lawyer near you? Most attorneys on UpCounsel offer free consultations.

Get a Free Consultation. Profits and Losses The net profits of the partnership shall be divided equally between the partners and the net losses shall be borne equally by them. Interest No interest shall be paid on the initial contributions to the capital of the partnership or on any subsequent contributions of capital.

Partnership Funds All funds of the partnership shall be deposited in its name in such checking account or accounts as shall be designated by the partners. Partnership Books At all times during the continuation of the Partnership, the Partners shall keep accurate books of account in which all matters relating to the Partnership, including all of its income, expenditures, assets, and liabilities, shall be entered. Management Duties The partners shall have equal rights in the management of the partnership business including the authority to bind the Partnership in making contracts and incurring obligations in the name and on the credit of the firm, and each partner shall devote their entire time to the conduct of the business.

Dissolution The partnership may be dissolved at any time by agreement of the partners, in which event the partners shall proceed with reasonable promptness to liquidate the business of the partnership. The assets of the partnership business shall be used and distributed in the following order: a to pay or provide for the payment of all partnership liabilities and liquidating expenses and obligations; b to equalize the income accounts of the partners; c to discharge the balance of the income accounts of the partners; d to equalize the capital accounts of the partners; and e to discharge the balance of the capital accounts of the partners.

Death of a Partner Upon the death of either partner, the surviving partner shall have the right either to purchase the interest of the decedent in the partnership or to terminate and liquidate the partnership business. Notices All notices between the parties provided for or permitted under this Agreement or by law shall be in writing and shall be deemed duly served when personally delivered to a Partner or, instead of personal service, when deposited in the United States mail, as certified, with postage prepaid, and addressed to the partner at the address of the principal place of business of the Partnership or to another place that may from time to time be specified in a notice given pursuant to this paragraph as the address for service of notice on the Partner.

Arbitration Any controversy or claim arising out of or relating to this Agreement, or the breach hereof, shall be settled by arbitration in accordance with the rules, then obtaining, of the American Arbitration Association, and judgment upon the award rendered may be entered in any court having jurisdiction thereof.

Integration This Partnership Agreement contains the entire agreement of the parties with respect to the subject matter of this Agreement, and supersedes all prior negotiations, agreements and understandings with respect thereto. What is a Partnership Agreement? A partnership agreement may also be called: General Partnership Agreement Partnership Contract Articles of Partnership Types of Partnership Agreements There are three basic types of partnership agreements.

There is almost no downside to using a partnership agreement. Basic Information Needed in a Partnership Agreement You must include basic information in your partnership agreement to set the boundaries of your business. Some of the basic information your agreement needs to include is: Partner names The name of your partnership The date your partnership takes effect Length of the partnership The purpose of your partnership After this information is recorded, discussions about the partnership terms can begin.

Outlining Your Partnership A partnership agreement is very detailed. Capital Contribution This determines ownership percentage. Types of Partners Your partnership may contain different types of partners with different workloads.

Distribution Distributing profits and losses is an important part of a partnership agreement. Salary Partners should agree on a salary. Maintenance Part of your agreement should include tasks necessary to maintain your business. Management You must discuss how the business is managed. Withdrawal At some point, a partner may need to withdraw from the agreement.

Dissolution Your partnership may eventually need to dissolve. There are many reasons for dissolution, such as: Your agreement may include an end date. Your business has served its purpose. You will receive it in Word and PDF formats. You will be able to modify it. A Partnership Agreement is a contract between two or more individuals who would like to manage and operate a business together in order to make a profit. Each Partner shares a portion of the partnership's profits and losses and each Partner is personally liable for the debt and obligations of the Partnership.

One benefit of a Partnership is that Partnership income is only taxed once. Partnership income is distributed to the individual Partners who are then taxed on the partnership income. This contrasts with a corporation where income is taxed at two levels: first as a corporate entity and then at the shareholder level where shareholders are taxed on any dividends they receive. The Partnership Agreement describes the Partner responsibilities, outlines the ownership interest in the Partnership, defines the profit and loss distribution of each Partner, prepares the Partnership for common business scenarios, and includes other important rules about how the Partnership will be managed and conduct business.

The document is a critical foundational document for running a new business and serves to set the business up for success by ensuring clear communication and defined responsibilities for all of the Partners. This Agreement documents both contingency plans for when things go wrong as well as descriptions of the Partnership's day-to-day operations.