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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