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A Partnership Agreement is a binding contract that spells out how two or more people will run a business together. It covers the essential rules of your partnership: who owns what percentage, how you'll share profits and losses, and who makes key decisions.

Beyond the basics, this legal document protects all partners by clarifying how to handle important situations like bringing in new partners, resolving disputes, or ending the partnership. While state laws provide default rules for partnerships, having your own written agreement lets you customize these terms to fit your specific business needs and helps prevent costly misunderstandings down the road.

Create a Partnership Agreement before you start doing business with others���������������������������ideally during your first serious discussions about forming a company together. This timing lets everyone align on crucial details while enthusiasm is high and relationships are positive.

The agreement becomes especially important when partners bring different resources to the business, like one providing funding while another contributes expertise. It's also vital when launching businesses in regulated industries, family ventures, or situations where partners have unequal time commitments. Having clear terms from day one prevents costly disputes and protects everyone's interests as the business grows.

• Business Partnership Agreement: Standard template for general business partnerships, covering profit sharing, management rights, and basic operations.
• Construction Partnership Agreement: Specialized for construction ventures, including project-specific terms, liability allocation, and equipment ownership.
• Referral Partner Agreement: Focused on commission structures and referral relationships between businesses.
• Company Partnership Agreement: Detailed version for larger organizations, with complex governance and ownership structures.
• Partnership Contract Agreement: Basic framework emphasizing contractual obligations and partner responsibilities.

• Business Partners: The primary parties who sign and are bound by the Partnership Agreement, including both active managing partners and silent investors.
• Business Attorneys: Draft and review the agreement to ensure legal compliance and protect their clients' interests.
• Accountants: Help structure profit-sharing arrangements and tax implications detailed in the agreement.
• Industry Regulators: May review Partnership Agreements in regulated sectors like banking or healthcare.
• Business Managers: Execute daily operations according to the agreement's terms and decision-making procedures.
• Future Partners: Potential additions to the partnership who must understand and agree to existing terms.

• Basic Details: Gather each partner's legal name, contact information, and tax ID numbers.
• Capital Contributions: Document what each partner brings in money, property, or services.
• Ownership Structure: Decide profit-sharing percentages and voting rights among partners.
• Management Roles: Define each partner's responsibilities, authority levels, and time commitments.
• Exit Strategy: Plan procedures for partner departure, business sale, or dissolution.
• Financial Details: Outline banking arrangements, accounting methods, and distribution schedules.
• Digital Tools: Use our platform to generate a legally-sound agreement that includes all required elements.

• Partner Information: Full legal names, addresses, and roles of all partners involved.
• Business Purpose: Clear description of the partnership's activities and objectives.
• Capital Contributions: Detailed breakdown of what each partner contributes initially.
• Profit Distribution: Formula for sharing profits, losses, and draws among partners.
• Management Rights: Decision-making authority and voting procedures.
• Transfer Provisions: Rules for selling interests or adding new partners.
• Dissolution Terms: Process for ending the partnership and distributing assets.
• Dispute Resolution: Procedures for handling disagreements between partners.
• Governing Law: State laws that will govern the agreement's interpretation.

A Partnership Agreement differs significantly from an Agency Agreement. While both involve business relationships, they serve distinct purposes and create different legal relationships.

• Legal Structure: Partnership Agreements create shared ownership and mutual responsibility among partners, while Agency Agreements establish a principal-agent relationship where one party acts on behalf of another.
• Profit Sharing: Partners share both profits and losses directly as owners, whereas agents typically earn commissions or fees for specific services.
• Decision Authority: Partners have mutual rights in business decisions, but agents must follow their principal's instructions within defined limits.
• Liability: Partners share unlimited liability for business debts, while agents generally have limited liability when acting within their authorized scope.
• Duration: Partnerships typically involve long-term business ownership, whereas agency relationships often focus on specific transactions or time periods.