General Partnership Agreement - version 2
What this document covers
The General Partnership Agreement is a legal document that establishes the framework for a partnership between two or more individuals who wish to conduct business together. Unlike other business structures, such as corporations, a general partnership does not require formal incorporation and allows for shared responsibilities and profits among partners. This agreement outlines the rights, duties, and obligations of each partner, ensuring that all parties are aligned in their business operations.
What’s included in this form
- Name of the Partnership: Specifies the official name under which the partnership operates.
- Term of Partnership: Defines the duration for which the partnership will exist.
- Capital Contribution: Outlines the initial investments by each partner and maintains records of their shares.
- Income Accounts: Keeps track of each partner's share of profits and losses.
- Management: States that all partners have equal rights in managing the business.
- Dissolution: Procedures for ending the partnership and settling its obligations.
Common use cases
This form is essential when two or more individuals decide to unite their resources and efforts to run a business. It is utilized in various scenarios, including starting a new venture, joining existing businesses, or formalizing an informal partnership. This agreement clarifies the terms of cooperation, helping to prevent conflicts and misunderstandings between partners.
Who this form is for
- Individuals forming a new business partnership.
- Existing partners who need a formal agreement to clarify their roles.
- Business owners seeking to outline procedures for profit sharing, management, and dissolution.
- Anyone looking to establish a fair framework for partnership operations.
Completing this form step by step
- Identify the partners: Enter the names and addresses of each partner.
- Specify the partnership name: Fill in the chosen name for the partnership.
- Set the term: Indicate the start date and duration of the partnership.
- Document capital contributions: Record the initial financial contributions made by each partner.
- Review and sign: Ensure all partners read, agree, and sign the agreement to make it binding.
Does this document require notarization?
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Avoid these common issues
- Failing to clearly define the roles and responsibilities of each partner.
- Not specifying the procedures for profit and loss distribution.
- Overlooking the terms for exiting or dissolving the partnership.
- Neglecting to include the initial capital contributions of each partner.
Why use this form online
- Quick access to professionally drafted templates, saving time and legal costs.
- Easy customization based on your specific business needs.
- Document security and the ability to download and store legally binding forms.
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FAQ
Partnership DeedPartnership deeds, in very simple words, are an agreement between partners of a firm. This agreement defines details like the nature of the firm, duties, and rights of partners, their liabilities and the ratio in which they will divide profits or losses of the firm.
Like any contractual agreement, partnership agreements do not have to be in writing, as verbal agreements are also legally binding.In a partnership, each person is liable for the debts and actions of the other partners, so the contractual relationship and obligations need to be completely transparent.
Types of Partnership General Partnership, Limited Partnership, Limited Liability Partnership and Public Private Partnership.
Name of the partnership. Contributions to the partnership. Allocation of profits, losses, and draws. Partners' authority. Partnership decision-making. Management duties. Admitting new partners. Withdrawal or death of a partner.
Your Partnership's Name. Partnership Contributions. Allocations profits and losses. Partners' Authority and Decision Making Powers. Management. Departure (withdrawal) or Death. New Partners. Dispute Resolution.
LLC partnership (also known as a multi-member LLC) Limited liability partnership (LLP) Limited partnership (LP) General partnership (GP)
Name of your partnership. Contributions to the partnership and percentage of ownership. Division of profits, losses and draws. Partners' authority. Withdrawal or death of a partner.
For example, let's say that Fred and Melissa decide to open a baking store. The store is named F&M Bakery. By opening a store together, Fred and Melissa are both general partners in the business, F&M Bakery. It is important to note that each general partner must be involved in the business.
