How Do You Get a Partnership Agreement

When it comes to starting a new business, it`s important to have a partnership agreement in place to ensure that everyone is on the same page. A partnership agreement outlines the roles and responsibilities of each partner, how profits and losses will be distributed, and how disputes will be resolved. Here are some steps to consider when getting a partnership agreement:

1. Identify the partners: The first step is to identify who will be the partners in the business. This may be a co-founder, a family member, or a business acquaintance. Each partner should have a clear understanding of what they bring to the table, and what they hope to achieve from the partnership.

2. Define the business structure: Next, you will need to define the structure of the business. This includes deciding on whether it will be a limited partnership, a general partnership, or a limited liability partnership. Each structure has its own set of rules and regulations, so it`s important to choose the right one for your business.

3. Set expectations and responsibilities: Once you have identified the partners and defined the business structure, it`s time to set expectations and responsibilities. This includes defining each partner`s role in the business, as well as their responsibilities and obligations. It`s also important to outline how much time each partner will commit to the business, as well as any other expectations.

4. Determine profit and loss distribution: A partnership agreement should also include how profits and losses will be distributed between the partners. This should be based on each partner`s contribution to the business, as well as their agreed upon percentage of ownership.

5. Establish dispute resolution procedures: Finally, it`s important to establish dispute resolution procedures in case any disagreements arise during the partnership. This may include mediation or arbitration, as well as how the partners will come to a decision if they are unable to agree on a course of action.

Getting a partnership agreement can be a complex process, but it`s an important step in ensuring the success of your business. By following these steps, you can create a partnership agreement that sets out clear expectations, responsibilities, and procedures for your partnership.