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Partnership Agreement


Overview
- The Partnership Agreement establishes two or more individuals as partners in a business venture.
- One fundamental decision all business owners must make is selecting the appropriate business entity.  Review the Business Attorney Forms of Business Ownership Checklist to help you decide which business entity is the most appropriate for you.
- Unlike other kinds of business entities, the law does not require that the partners have anything in writing.  However, it is strongly advisable for the partners to have a written partnership agreement.  This helps to ensure that there is no disagreement about the important terms of their arrangement, about the obligation of the partners to contribute capital, and about the sharing of the profits and losses of the partnership.
- Even if there is no written or oral agreement, the law will assume the partnership exists when two or more persons carry on as co-owners in a for-profit business.
- In nearly all states, and in the District of Columbia, partnerships are governed by the Uniform Partnership Act (UPA).  Those portions of a Partnership agreement that are not governed by the UPA are, of course, subject to the standard contract law concepts and rules.
- Because of the ease with which they can be set up, it is not unusual for partners to begin their business as a partnership and later convert the business to a corporation.

When You Need It
- To establish the terms of a partnership between two or more individuals in a business venture.  
- This agreement should be used with for-profit ventures where the partners believe the venture will have some extended life.


Getting Started

You will need:
- Name of each partner, the amount of each partner's capital contribution and the details of how each will participate in the profits and losses of the partnership.
- Name and address of the partnership business.
- Description of the business.

When to Review and Revise 
- To correct the information contained in the agreement.
- To draft another Partnership Agreement.