A partnership agreement is used when two or more individuals join together to create a new business partnership or to formalize an existing business partnership. A partnership agreement allows you to structure your relationship with your partners in a way that suits your business.

This Business-in-a-Box template is comprehensive in scope, containing nearly 30 clauses relating to capital contribution, management roles, debt and profit allocation, partner performance, restrictions on the partners, dissolution, termination and other important partnership considerations. You and your partners can establish the shares of profits, account for losses, apportion appropriately to each partner, assign the responsibilities of each partner, determine what will happen to the business if a partner leaves and establish other important guidelines.

Partnership agreements are a fundamental necessity for new partnerships or for existing partnerships if you don't have a written and signed agreement. Not only does it outline basic details such as investment levels and management structure, it also protects all parties in the event of a disagreement or dissolution. The sample partnership agreement included in Business-in-a-Box is comprehensive and detailed.

Additional details covered in the Business-in-a-Box partnership agreement:

• Meeting schedules and requirements
• Authority for business roles and functions
• Keeping records and accounts
• Arbitration
• Modifications to the agreement
• Governing law
• . . . and more