Partnership Agreement
A contract between two or more persons or entities forming a general or limited partnership, defining each partner's capital contribution, profit share, management rights, and exit terms.
What it means
A partnership agreement governs the internal affairs of a partnership: capital contributions, profit and loss allocation, management and voting rights, transfer restrictions, admission of new partners, withdrawal and dissolution, and dispute resolution. Without one, state partnership statutes (typically the Uniform Partnership Act or Revised Uniform Partnership Act) supply default rules that often do not match the partners' actual intent.
Read more
- Partnership Agreement Guide: What to Include & Why — Learn what a partnership agreement is, which clauses are essential, and how to avoid costly default rules. Your complete guide to protecting your business partnership.
- Partnership vs Operating Agreement: Key Differences — Partnership agreement or operating agreement? Learn the key legal and tax differences, which one your business needs, and what to include in each document.