Starting a business is fun. You have so many challenges in many things. Product strategy, marketing strategy, employee management and so on. It is all fun until you have to write a business partnership agreement. This is something that you cannot do alone if you are a beginner. Just don’t!
Writing a business agreement requires you to understand so many aspects of your business. You will have to learn so many documents and even about the laws applied in your area. Then the partnership agreement is one of the most difficult things because you are dealing with another party. In this case, we provide you the business partnership agreement template to help you make the best.
A business partnership agreement is a legal document that states each party’s responsibilities and rights when doing a partnership. This is the one thing to do first before investing some money in a joint venture for example. Luckily, you don’t have to hire an attorney, and you can check the local association website if you can find some samples you can use to start making it one. Or, simply download our sample of business partnership agreement so you can know what to write. Furthermore, remember to include the following important clauses when writing the agreement.
How To Write A Business Partnership Agreement?
- Decision-making – Discus before stating a statement in the agreement about how you will make the decision especially when it is related to important topics. The decision made should be unanimous which if there is no agreement in taking a decision, then everyone should not make an action.
- Capital contribution – Address about the contribution every party has put on to run the business. Besides, you need to address what will happen to the money if there is no profit. For example, you consider putting extra money, close the door, look for some investment, etc. If a party is the “money” partner, and then the remaining one is the “workhorse”, then the agreement should clear on the paper so everyone will understand what they will get from the risk and profit.
- Distributions – Start with statements about when the parties are allowed to take the money. If they want to develop the brand, then they might need to make the money stay longer in the company. You have to discuss it with the partner and make a clear rule about it.
- Death or disability – We don’t know about what happens shortly. It is always good to get prepared. You might need to state insurance, wills, and trusts so this will help you make the decision. Talk about who would inherit the shares in the company and also who are the beneficiaries.
- Dissolution – This is very crucial to discuss it before the effective date of a partnership begun. This is important to set some solution when one of the party breaches the agreement whether you want to take legal action and so on.
That’s all our short tips about how to make a business partnership agreement. We hope this helps you!
Business Partnership Agreement Template Sample