A partnership agreement defines the scope and responsibilities of individuals forming a business partnership.
- Forming a new partnership
- Clarifying the terms of an existing partnership.
If you are starting a business with friends, family, or business associates, you may want to consider whether you should form a legal partnership. A partnership is formed when two or more individuals agree to pool their capital, labor, or skills into a business that they own together. Each partner is entitled to a share of the profits and is liable for a share of the losses of the business. If you are considering forming a partnership, use this interactive form to create a partnership agreement that works for everyone involved.
While it is not a legal requirement in some jurisdictions, it is always a good idea to have a formal partnership agreement that describes everyone’s roles and responsibilities in a jointly owned business. Often, partners join together because they each contribute something unique to the venture, and having an agreement at the onset about how each partner will contribute and what they are entitled to in return can help avoid conflict in the future.
Partnership agreements define the degree to which business operations will be conducted as a collaboration, as well as create a framework for decision making in the event that co-owners disagree about a course of action. A partnership agreement is a foundational document to any co-owned business, and it helps entrepreneurs be prepared for common business scenarios that arise within partnerships. If you think a legal partnership may be a good option for your co-owned business, use this partnership agreement to create a framework that organizes everyone’s roles and responsibilities.