If you want to go into a business with a partner, you need to have a written agreement called partnership agreement. This is very important to spell out the rights & responsibilities of each party. Therefore, you have to be able to create a partnership agreement template.
How to Write a Partnership Agreement Template
Partnership agreement form covers some major areas. So, you have to include them in your written agreement. First of all, you must state the partnership’s name. Here, you just mention the last name like Smith or Jack. Alternatively, you can also adopt a fictitious business name like Westside Home Repairs.
Besides that, the partnership contribution should also be described clearly. You have to state who will contribute the property, cash, services, etc. Besides that, you also have to explain the ownership percentage of each partner. So, your business will run well and both parties will contribute maximally.
Business always has a risk of profits, draws and loses. The allocation of profit, draw & lose must be stated in this partnership agreement. It also relates to when the profit will be distributed. So, you have to pay attention to this aspect and reach agreement with your business partner.
Then, it is also very important to include the authority of the partners. With no agreement, a partner may bind this partnership freely. So, you have to make it clear in the partnership agreement. That is why you cannot miss providing the partner’s authority in this partnership written agreement form.
Next, you also need to include partnership’s decision-making. We all know that we will face many troubles in business. So, it must be clear how you and your partner should make a decision when facing a trouble. Because there is no magic formula for it, you have to discuss it well.
In business, everything must be planned properly including the management duties. You have to include this in the agreement. It may relate to who keeps the documents, who is going to deal with the customers or clients, who will supervise employees, who will negotiate suppliers, etc.
In the partnership agreement, you also have to include admitting new partners. If you want to expand your business, bringing new partners will make it easier especially when facing issues. So, it must be included clearly in the agreement of partnership with easy to understand language.
You may also need to include withdrawal / death of a partner. If a partner passes away, this should be clear how the business will be continued. Here, you have to set up a reasonable buyout scheme in the agreement to deal with it. Describe it as clear as possible with simple language.
Last, your partnership agreement template should include resolving disputes, too. If you & your partners are deadlocked on a problem, what will you do? Will you go to court? So, it is very important to provide alternative solution that gives better benefits for all. For example, it can be arbitration or mediation.
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