Partnership Agreement Template
A partnership agreement is a contract between business partners that defines ownership, profit sharing, decision-making, and what happens when a partner leaves. Use it whenever two or more people go into business together, before disagreements arise, not after.
- Starting a business with one or more co-founders or partners
- Defining each partner’s ownership stake and capital contribution
- Setting how profits, losses, and decisions are shared
- Planning ahead for a partner leaving, selling, or being bought out
What a good partnership agreement contains
LegalAI generates each of these clauses for you, tailored to your answers and jurisdiction. Knowing what they do helps you review the draft with confidence.
Ownership and contributions
Each partner’s stake and what they contribute in capital, assets, or work.
Profit and loss allocation
How profits and losses are divided among partners.
Decision-making and management
Who decides what, and which decisions need unanimous consent.
Admission and exit of partners
How new partners join and how a departing partner’s share is handled.
Dispute resolution and dissolution
How disagreements are resolved and how the partnership can be wound down.
Frequently asked questions
Why do I need a partnership agreement?
Without one, your partnership is governed by default local rules that may not match your intentions. A written agreement sets ownership, profit share, and exit terms before disputes arise.
What should a partnership agreement include?
It should cover ownership stakes, capital contributions, profit and loss allocation, decision-making, how partners join or leave, and how disputes and dissolution are handled.
What happens if a partner wants to leave?
A good partnership agreement includes a buy-out or exit clause that sets how a departing partner’s share is valued and transferred, avoiding a forced sale or deadlock.
LegalAI generates document drafts and is not a law firm. A generated document is a starting point, not legal advice. For high-stakes or regulated matters, have a licensed attorney review the final document.
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