If you plan on going into bandar poker online business with a partner, a written partnership agreement is a crucial document to protect both of you. A partnership agreement spells out the rights and responsibilities of each business partner and helps you avoid future conflict. Without this document, minor misunderstandings can erupt into major disputes, which can be devastating to your business.
The business.com community often asks about the ins and outs of partnership agreements. We dug in to find out what you need to know to create your own agreement.
What is a partnership agreement?
If you are forming a business partnership, such as a limited partnership or limited liability partnership, it’s best practice to have a partnership agreement in place. A partnership agreement is a document that you and your partner(s) create to clearly lay out each partner’s duties and liabilities, the percentage of profits each is entitled to, and other aspects of creating a business together.
What is the importance of a partnership agreement?
Even if you’re going into business with a family member or close friend, a partnership agreement can help you avoid conflict or future legal difficulties. Common problems that arise in partnerships include the division of ownership, roles and responsibilities, and the division of assets in a termination of the partnership. A partnership agreement can protect you and your partners in all these areas, but it can also prevent minor misunderstandings from happening in the first place.
How to create a partnership agreement
Every state has its own laws concerning partnerships in the Uniform Partnership Act, also known as the Revised Uniform Partnership Act. Before you create a partnership agreement, make sure you and your partner(s) are familiar with your state’s laws, as the statutes defined under the UPA will control many aspects of your partnership, unless you determine different rules within a written agreement.
State laws regarding partnerships are designed to be broad and won’t necessarily apply to your needs and circumstances. Depending on your business, your state’s UPA may not be helpful for your specific situation. A partnership agreement, on the other hand, can and should be as specific and detailed as possible.