What Is a Partnership Agreement?
Whenever individuals enter into a business arrangement, it is important to set up an agreement, or set of guidelines, by which to conduct the enterprise. A well-designed partnership agreement can help prevent disputes and other issues later on. It is in your best interests to work with a Conroe partnership attorney in putting together your agreement. So, what is a partnership agreement?
Partnership Agreements Defined
Your Conroe partnership attorney will tell you that without a clear agreement between partners from the outset, you are setting your business up for difficulties. In a nutshell a business agreement states the type of business that will be pursued (what goods or services will be provided), how much capital will be contributed by each partner, and what rights and responsibilities will be retained by the partners.
It is important to note that an agreement is very important among partners. This is because, unlike their counterparts in corporations, they are jointly and severally liable for business debts. In other words, if one partner incurs debt, all the partners are liable.
What Needs to Be Included in a Partnership Agreement
When you meet with your Conroe partnership attorney, he will discuss with you the issues that are specific to your enterprise which should be included in the agreement. Each agreement, then, differs in certain specifics, but generally you need to include:
- The name of the business
- The capital, property, and other materials and services that are contributed by each partner
- How profits and losses will be allocated
- Authority of the partners
- Which partners are involved in decisions
- Managerial duties of each partner
- How to handle admission of new partners
- What to do if a partner dies or wishes to retire/withdraw
- How to resolve disputes
A Conroe Partnership Attorney Can Help You Set up Your Partnership
If you are creating a partnership, it is vital that you work with a Conroe partnership attorney for the drafting of your partnership agreement and other matters. Call Peterson Law Group today at 979-703-7014 or 936-337-4681.