If you`re looking to start a business with a partner, one of the most important things you`ll need is a partnership agreement. This document outlines the responsibilities and rights of each partner and helps prevent disagreements in the future.
A basic 50/50 partnership agreement template is a great starting point for those new to business ownership. Here are some key elements you should include in your partnership agreement:
1. Partnership Name and Purpose
Start by outlining the name of your partnership and the purpose of your business. This should be a clear, concise statement that summarizes what you hope to achieve together.
Each partner should list their contributions to the partnership, including any funds, assets, or skills they bring to the table. This section should also outline how profits and losses will be divided between partners.
3. Management and Control
Outline how management and control will be divided between partners. Will decisions be made jointly, or will one partner have more authority than the other? This section should also outline how disputes will be resolved.
4. Accounting and Records
Specify how financial records will be kept and who will be responsible for maintaining them. Partners should also agree on how often they will review financial statements and how they will be distributed.
5. Termination and Dissolution
Include provisions for how the partnership will be terminated or dissolved. This should outline the process for selling assets and dividing profits or losses.
Partners should agree to indemnify each other for any losses or damages incurred by the partnership. This protects each partner from liability for the actions of the other.
Partners should agree to keep all partnership information confidential. This includes financial and business strategies, as well as any personal information about customers or clients.
A basic 50/50 partnership agreement template can be a great starting point for those new to business ownership. However, it`s important to customize this template to fit your specific needs. Consult with a lawyer or other business advisor to ensure your partnership agreement covers all necessary elements and protects your interests.