A partnership agreement is a contract between partners in a partnership which sets out the terms and conditions of the relationship between the partners, including: Percentages of ownership and distribution of profits and losses. Description of management powers and duties of each partner.
A well-made partnership agreement will include:
- Percentage of ownership for each partner;
- Allocation of profits and losses;
- Who can bind the partnership;
- Making decisions;
- The death of a partner;
- Resolving disputes.
The three main types of partnerships are:
- General Partnerships. A general partnership involves two or more owners carrying out a business purpose;
- Limited Partnerships;
- Limited Liability Partnerships (LLP).
Sanitas Law can assist you in crafting a partnership agreement that will be an important tool in the success of your venture.