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So you’ve brainstormed a business idea and found the perfect partner to work with. Now what?
The first step is organizing a partnership agreement so you both know exactly where you stand. Here’s exactly what to include in your agreement and how to find a free template to make it an easy-breezy process.
A partnership agreement is a legally binding contract between two or more parties who would like to work together to operate a business in order to generate profit. It sets out the responsibilities, duties and obligations of each partner, and ensures each party’s interests are recognized and protected.
Partnership agreements should be written and signed at the beginning of a business venture. It will spell out the responsibilities of each partner and ensure that all owners share a common vision for the business. These agreements should be put in place as early as possible to avoid any future disputes.
Partnership agreements can turn out to be lengthy documents as they are essentially setting out the foundations for your business. Typically, a partnership agreement should address the following:
A partnership agreement must include clauses that cover all areas of the business, from the day-to-day running of the business to how a partner goes about leaving the business in the future. To write an agreement that all business partners agree to, you must all sit down together and agree on certain terms and conditions to be included in the document. It’s best to refer to a legal template for the ins and outs of the document to give you an idea of what to include in your partnership agreement.
Lawyers are technically not required to write up a partnership agreement, but consulting one can be helpful. Using a lawyer to help you draft your document will make sure it remains within the law as well as creating a comprehensive agreement for the business.
Also, a business lawyer can ensure everyone’s investment in the partnership and business is protected. If you’d rather write the document yourself, make sure you use a legal template that has been drafted with your specific state laws in mind.
Partnership agreements are legally binding between the partners of a business. They are created to deal with any sort of situation that might cause confusion, disagreement or change. A well-planned agreement drafted at the beginning of a partnership is critical to smooth business operations.
Partnership agreements can help to do the following:
A partnership agreement protects the interests of all partners involved and provides guidance to moderate any disputes that the company may face in the future. Though a Joint Venture Agreement may seem similar to a partnership agreement, they are quite different things when it comes down to legalities. Here are a few key differences:
Partnership agreements can be upwards of 15 pages, which is why using a legal template can be extremely useful. It’ll make sure that nothing is left unwritten and all the legal jargon is there ready for you. Consider an online legal service that allows you to view or download a partnership agreement template for free.
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