Business Partnership Agreement
It can be tempting, when starting a business with another person or entering into a form of business arrangement with another entity, to just crack on with the job at hand. However, signing a business partnership agreement contract first, is a far better use of your time. Here, we look at why and what any good business partnership agreement template should include.
What is a business partnership agreement?
A business partnership agreement is a legal document that records and outlines the details surrounding a business relationship that is structured as a partnership. In that way, it will identify how the business is owned by stating how much each partner holds of the company. A good business partnership agreement template should therefore also state how profits and losses are to be distributed in accordance with that ownership structure.
Importantly, even a small business partnership agreement should also detail what is expected of each partner in terms of their responsibilities. And, even at the very preliminary stages of a partnership, a good agreement will also identify the steps that should be taken when a partnership is to be dissolved, under what circumstances, and when. Identifying how a partner can sell his or her part of the business is therefore helpful too.
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