Easy Questions  
Free Legal Documents

Key Elements of a Business Partnership Contract in Charlotte, MI

Key Elements of a Business Partnership Contract in Charlotte, MI


A real businessman values his partners like friends and his partnership like friendship.
 
- Amit Kalantri


Partnerships are easy to form, easy to operate and very inexpensive. There are no formalities, such as (annual meetings or filings) and they avoid the double taxation of corporations. One drawback is that all partners are subject to personal liability for all debts, losses, and liabilities of the partnership. Each partner is also generally liable for every other partners' actions on behalf of the partnership.

Poorly organized partnerships can lead to nasty disputes among partners in the future. A partnership agreement can clarify the key elements of a partnership in a written agreement. Here's a list of the major areas that most partnership agreements should cover:

Name of the partnership. One of the first things you must do is agree on a name for your partnership. You can make up a new Trademark like Philadelphia Web Design or use your own last names, such as Smith & Jones. Either way, it is a good idea to make sure that the name isn't already in use, that a web url is available and then register a business name statement with your county clerk.


Contributions to the partnership. It's critical that you and your partners work out and record who's going to contribute cash, property, or services to the business before it opens -- and what ownership percentage each partner will have. Disagreements over contributions have poisoned many promising partnerships.

Allocation of profits, losses, and draws. Decide whether profits and losses will be allocated in proportion to a partner's percentage interest in the business. Define the rules for partners to withdraw cash from the business. You and your partners may have different financial needs and different desires about how the money should be divided up and distributed.


Management duties. Who will keep the books? Who will deal with customers? Supervise employees? Negotiate with suppliers? Think through the management needs of your partnership and be sure you've spelled it out in your partnership agreement.

Electing new partners. Agree on a procedure for selecting and on boarding new partners. Define requirements such as capital contributions and voting rights.

Withdrawal or death of a partner. Set up a clear buyout scheme in your partnership agreement.

Resolving disputes. It would probably benefit all partners if the partnership agreement provides for alternatives to litigation for dispute resolution, such as mediation or arbitration.

 
Personalize & Print a Free MI Partnership Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Charlotte, MI
Reed Sarah L
109 W Lovett St
Charlotte, MI 48813
(517) 541-9883
Attorneys, Estate Planning Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorney
Buffmyer Raymond G
133 S Cochran Ave
Charlotte, MI 48813
(517) 543-8610
Family Law Attorneys, Attorneys, Legal Service Plans
Cook Kathleen F
121 S Cochran Ave
Charlotte, MI 48813
(517) 543-7643
Legal Service Plans, Attorneys, Wills, Trusts & Estate Planning Attorneys, Probate Law Attorneys, Ge
Prater Ann M
100 W Lawrence Ave
Charlotte, MI 48813
(517) 541-5555
General Practice Attorneys, Attorneys
O'Deen Kenneth L
123 S Cochran Ave
Charlotte, MI 48813
(517) 543-5551
Attorneys, General Practice Attorneys, Legal Service Plans
James R. Shaull
128 1/2 S Cochran Ave, p.o. box 216
Charlotte, MI 48813
(517) 543-4780
Attorneys, Legal Service Plans
Lucas X Dillon
204 S Cochran Ave
Charlotte, MI 48813
(517) 997-3043
General Practice Attorneys, Attorneys
Sanders Scott L
228 S Cochran Ave
Charlotte, MI 48813
(517) 543-2770
Attorneys, Legal Service Plans
Chandler Sarah M
338 S Cochran Ave
Charlotte, MI 48813
(517) 543-0831
Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US