If you’re planning to start a business partnership with a business partner, it’s important to have legal paperwork outlining your rights and responsibilities within the partnership.
We’ve teamed up with LHS Solicitors’ elXtr to bring you a free business partnership agreement sample to help you and your partner create a solid legal framework moving forwards.
Business partnership agreement template - free PDF or Word download
Enter your email address to start your download. Once you’ve filled that in you can select whether you want your template as a PDF or a Word document and it will be with you in moments.
Business partnership agreement template - free download
Take your first steps to formalising your business partnership.
Why use an elXtr template?
As it’s just the two of you, your legal needs are going to be rather different from those of a giant corporation. elXtr was designed with the smallest of small businesses in mind, so we know the quality legal documents they provide will be suited to your particular needs.
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What is a partnership agreement?
A partnership agreement is a legal document that sets out the terms and conditions for a business partnership.
The scope of the document can be as wide or as narrow as you and your partner desire. Our template includes the following sections:
This is an important part of any legal document as it defines key terms to make sure everyone is on the same page when reading the document.
2. The partnership
This states the date the partnership commenced and the name of the partnership.
This section deals with the money used within the partnership, covering the likes of initial cost, interest rates and who will own what percentage.
4. Management and decision making
This does what it says on the tin, laying out a framework for how decisions will be made within the partnership.
5. Accounting records and annual accounts
When and how financial records will be kept is covered in this section.
6. Profits and losses
This is a very brief section covering how profits and losses will be divided between the partners.
This section covers when and how partners will be allowed to withdraw money from funds belonging to the partnership.
8. Loans to the partnership
If either of you want to, you can loan money to the partnership. This clause governs how that process would happen.
9. Partners’ duties and responsibilities
This section covers all of the duties that both partners are legally obliged to carry out.
These are restrictions on both you and your partner, covering activities you can’t engage in without the written consent of the other, such as becoming a guarantor or lending money that belongs to the partnership.
There are a number of conditions you might want to trigger the dissolution of the partnership, and you can use this section to specify them.
12. Option to purchase shares
It may get to the point where one of you wants to buy the other out, and the conditions for such an eventuality can be specified here.
13. No assignment
This section simply states that the benefit of the partnership agreement cannot be assigned by either partner.
This comes at the end of the document and gives dates and timeframes for certain aspects of the partnership.
You can add any further sections that you feel you need, or remove any that aren’t applicable to your particular partnership, but it’s best to do so in conjunction with legal counsel.
Using the elXtr partnership deed template
The attached template has a number of words in italics, which you will need to replace with the correct information, such as both of your names.
Once you’ve made those changes and any other amendments, it needs to be printed and signed by you and your partner, as well as two witnesses.
Partnership agreement template - free Microsoft Word document for download
If you would like to make changes and don’t have Adobe Acrobat, you can also download our partnership deed template in Word format.
The attached document has been produced by LHS so we can’t take responsibility for its contents. We’d recommend you take professional advice before making any important decisions based on its contents.