Small Business Partnership Agreement Word

If you`re starting a small business partnership, it`s crucial to have a written agreement in place outlining the terms and conditions of the partnership. This agreement, often called a partnership agreement or operating agreement, is a legally binding document that sets out the roles, responsibilities, and rights of each partner.

While there are numerous templates and samples online, it`s important to seek legal advice when drafting your partnership agreement. However, as a professional, here are some essential sections you should consider including:

1. Partnership structure: This section outlines the structure of the partnership, including the name of the partnership, the type of business entity (such as a limited liability partnership), and the percentage of ownership for each partner.

2. Partnership purpose: This section states the purpose of the partnership, including the business activities the partnership will engage in and the goals it hopes to achieve.

3. Capital contributions: This section outlines how much money each partner will contribute to the partnership, including any assets or services.

4. Profits and losses: This section explains how profits and losses will be distributed among partners based on the percentage of ownership established in the partnership structure.

5. Management and decision-making: This section outlines how the partnership will be managed and how decisions will be made, including who has the final say in specific situations.

6. Partner roles and responsibilities: This section outlines the roles and responsibilities of each partner, including their duties, expectations, and obligations to the partnership.

7. Dispute resolution: This section outlines the process for resolving disputes between partners, including arbitration or mediation.

8. Termination: This section outlines the circumstances under which the partnership can be terminated, including the death or departure of a partner.

9. Confidentiality: This section outlines the confidentiality obligations of each partner, including how confidential information will be protected and shared.

It`s important to note that the above sections should be customized to fit the unique needs and circumstances of your partnership. Furthermore, it`s crucial to have a legal professional review and finalize your agreement before signing. Investing in a well-drafted partnership agreement can save you time, money, and potential legal headaches down the road.

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