What Are Partnership Agreements

» Posted by on Oct 14, 2021 in Uncategorized | 0 comments


You and your partner may not always agree on what to do, which will lead to an argument. If you have an odd number of partners, a simple vote can determine how to proceed. In the worst case, partners in court could end up on opposite sides, costing a lot of time and money. It`s also a good idea to include terms that refer to the expected contributions that may be needed before the business actually becomes profitable. For example, if the start-up investments are not sufficient to drive the business into a profitable state, the partnership agreement should include all expectations of additional financial contributions from each partner. This avoids surprises on the road for a major contributor.