Business partnerships create synergy. It can combine all the skills and resources of business owners and create a whole strategy that is bigger and better for the company. But every business partnerships need a business partnership agreement. This agreement sets out all the obligations and responsibilities that each partner should have. However, making such agreements and contracts is not easy. Make the process easier for you by using our downloadable business partnership agreement templates. To discover more about this topic, continue reading.

Sample Custom Software Business Partnership Agreement Template

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Sample Business Partnership Separation Agreement

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Size: 24 KB

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Start-Up Business Partnership Agreement in Example

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School Business Partnership Agreement Format

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General Business Partnership Agreement in Word

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Sample Business Partnership Agreement to Download

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Free Business Partnership Agreement Checklist Sample

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Sample Business Partner Agreement in PDF

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What Is a Business Partnership Agreement?

A business partnership agreement is a legal contract between two or more business partners. It sets out specific guidelines for the running of an organization and the duties of each partner. Many business partners use a business partnership agreement to manage disputes, delineate responsibilities, and distribute profits or expenditures. For any business relationship in which two or more individuals own a stake in the company, a business partnership contract should be created, as these legal arrangements could offer guidance in more difficult times.

How to Make a Business Partnership Agreement?

Business agreements are very much useful when it comes to a business partnership. Many business partners are using this contract to ensure that both partners know their obligations to the company. Also, it can strengthen their relationship as partners. But as the author of the agreement, are you sure you are doing the right way? Ensure that you’re on the right track by including these points:

1. Ownership Percentage

A business partnership contract must state the ownership percentage of each partner, making each partner’s stake in the organization clear. Without such, it can cause confusion between the two and might be the start of the conflict. So when making a contract about a business partnership, ensure to put who owns what percentage of the business.

2. Business Operations and Transactions

When creating a business partnership agreement, don’t forget to include all the business operations and transactions. Your contract should explain which activities or operations will engage in and which will not. Without such, both parties would not be aware which of them can give the company many profits and which does not.

3. Decision-Making Process

In your contract or agreement, you must outline the responsibility of each partner in the decision-making process. It includes who has the corporation’s financial control and who has the authorization to add new partners. Also, include the details on how you distribute the profits and losses among partners.

4. Liability

The contract should restrict the liabilities facing each partner if the business partnership is established as an LLC. A partnership contract can be paired with other files, such as articles of incorporation. Thus, a business partnership contract alone is not adequate to entirely cover the parties from liability.

5. Dispute Resolution

A dispute settlement or resolution process should include in any business partnership deal. Disagreements are a common feature of doing business together, even if both partners are best friends, relatives, or husbands.

6. Business Dissolution

A business partnership contract should specify how separation should proceed if the partners wish to dissolve the business. You must also put any continuation or succession plans if either of the partners withdraws from the company.

FAQs

What does partnership mean?

A partnership is a legal agreement to run and maintain a company and divide its profits between two or more parties.

What are the types of partnerships?

There are three types of partnerships that you may have encountered before. The types of partnerships include:

Who needs a partnership contract?

Any two or more persons, including families (spouses), associates, or employees, who operate a for-profit company together may have a partnership contract. It lays out expectations and regulations to avoid disputes or conflicts in the future.

Knowing the functions of a partnership contract can save you from misunderstanding and confusion. However, knowing the purpose of your partnership contract is not enough. You also have to learn and understand how to make it. You can use our downloadable sample templates as your guidelines when making such contracts. Download it now to get started!

 

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