What is a partnership agreement?

A general partnership agreement outlines the rights and responsibilities of two or more partners owning a for-profit business. The agreement typically includes the upfront capital contributions of the partners and also indicates the nature of the business. Unlike corporations and LLCs, a general partnership is not a distinct legal entity separate from its owners. This means that partners personally incur all debts and liabilities on behalf of the partnership.

When should I use a general partnership agreement?

It is highly recommended that a written agreement always be used whenever two or more people decide to run this type of for-profit business together. Similar to a sole proprietorship, a general partnership is the default business structure created automatically whenever two or more people decide to conduct business together.

Do I need to file or register my partnership agreement?

You are not required to file a general partnership agreement with your state or local government. However, some states may permit you to do so. It is recommended that you visit your state's Secretary of State website (or similar business division website) in order to review any options they may provide. If permitted, there may be certain benefits available to partnerships that voluntarily register.

What is joint and several liability?

Partners in a general partnership are said to be "jointly and severally" liable for the partnership's obligations. This means that each partner may be held legally responsible for the total amount of any partnership debt. A party that brings a claim against the partnership may pursue one or all of the partners. If, as a result of the claim, one partner is forced to repay the debt in full, then that partner may later seek reimbursement against the remaining partners for their share of the debt in a separate proceeding.

Do I need a partnership agreement?

Partnership agreements are recommended for two or more people who run a for-profit business together for the purpose of making profit, including family (spouses), friends, or colleagues.

General Partnership Agreement

A partnership agreement defines how a partnership will function, how decisions will be made, and each partner's role in the business.

Our partnership agreement is state specific and provides the strongest level of partnership protection available while still allowing you to fully customize it according to the goals of the partnership.

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Our partnership agreement

Defines the relationships, duties, contributions, and responsibilities of partners
Specifies how capital, profits, and losses will be divided
Is compliant throughout all states and the District of Columbia
Provides step-by-step guidance to easily construct your partnership agreement

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Gather Information

As you complete your partnership agreement, you will need to provide certain relevant information. This includes the partnership address, partner capital contributions, ownership percentages, and management roles.

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Use the information you collected to complete the partnership agreement. We make this easy by guiding you each step of the way and helping you to customize your document to match your specific needs.

Review and Sign

It is important to read your agreement thoroughly to ensure the document is free of errors and omissions. After completing your agreement, all partners are required to sign the agreement to make it legally binding.

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