How Do I Write a Business Partnership Agreement?

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