When two or more people go into business together it is essential that they prepare a written agreement setting out how the business is to be managed and their relationship to each other as business partners. Having a well drafted partnership agreement creates a strong foundation for your business. It will assure that the business runs smoothly and prevent disputes and misunderstandings between the partners over their rights and responsibilities. Without a proper partnership agreement the relationship between those who go into business together with a view to profit will be governed by the old Partnership Act of 1890. This is rarely what is required in today’s business environment.
A partnership agreement will set out each partners capital contribution to the business, how profits are to be shared, how decisions are to be made and what happens if a partner wishes to leave the partnership. Typically decision making will be shared and profits divided equally. Our partnership agreement does all of these things and is suited to just about any business or profession. They can be used for partnerships between companies as well as people but are not appropriate for forming or later converting into a limited liability partnership.
This partnership agreement is suitable for use in England and Wales and includes clauses covering:
- Establishment of Partnership
- Involvement in Partnership Business
- Bank Accounts
- Profits and Losses
- Accounting Records
- Prohibited Acts
- Consequences of Death or Retirement