Business Law
Your Small Business Legal Team

partnership agreementsPartnerships are formed by 2 or more people who decide to go into business together.  A partnership can be general or limited in nature.

A general partnership is where all partners are equally responsible for the management of the business and its debts.

A limited partnership is where one or more of the partners is limited in their business liability to pay debts.

In partnerships it is crucial that a partnership agreement is created to outline the rules for such things as:

  1. how partnership disputes are to be determined;
  2. how proceeds and profits are to be divided;
  3. how any business debts or shortfalls are to be paid.

Without a partnership agreement you are left floundering with no documents to rely upon in the event of a partnership dispute.