Reviewed for 2018
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 Farillio to bring you a free business partnership agreement sample to help you and your partner create a solid legal framework moving forwards.
Sign up for our special content and email newsletters to access these documents. Once you’ve filled that in your Word document will be with you in moments.
As it’s just the two of you, your legal needs are going to be rather different from those of a giant corporation. Created particularly with small businesses in mind, Farillio legal documents are customisable to fit your particular needs.
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.
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.
This does what it says on the tin, laying out a framework for how decisions will be made within the partnership.
When and how financial records will be kept is covered in this section.
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.
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.
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 sets out the names of the partners, their contributions and share of the profit and loss.
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.
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.
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 Farillio 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.
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