A Partnership Agreement can also be known as:
⦁ General Partnership Agreement
⦁ Partnership Contract
⦁ Articles of Partnership
⦁ Business Partnership Agreement
A business partnership agreement is a contract between two or more business partners that is used to establish responsibilities, profit/ loss distribution of each partner, and other rules about general partnership, including (but not limited to) withdrawals, capital contributions, and financial reporting.
When it comes to business partnerships, all clients should sign a business partnership agreement to avoid miscommunications and legal problems that can arise, even when there’s no disagreement. A partnership is less formal than an incorporation; a partnership agreement can protect owners in the event of the death of one partner, a dispute, sale to a new partner or the dissolution of the business, among other benefits. Without this legal document, things can get ugly, regardless of the type of relationship between business partners. It spells out who owns what percentage of a business. If the business is sold, a partnership agreement delineates who gets what.
NAOSSOFT has been consulting with businesses around the globe for years, and our best advice to anyone entering a business with friends or family is to obtain a partnership agreement. We will draft up a business partnership for any business composed of two or more partners. The agreement will define percent of ownership by each partner, how the business will be conducted, what should happen if a partner leaves, terms of how the partnership will be conducted, who will serve as CEO, etc. We have the appropriate expertise not only to serve you but to prevent trouble down the road.
A business partnership agreement will protect you, your business partner(s), and your business in the long run. If you have been operating without this important piece of legal business document, this is your chance to make it right. Don’t make the mistake of starting a business partnership without a partnership agreement!
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