Small Business Partnership Agreement Template
Small Business Partnership Agreement
This small business partnership agreement, entered into on [Agreement.CreatedDate] is by and between the following entities:
- These two partners hereby form a small business partnership, known as [Partnership.Name] or simply “The Partnership”. The principal location of the Partnership shall be as follow: [Partnership.Address]
- The Partnership shall commence as of the date of this small business partnership agreement, and shall continue until cancelled pursuant to the full terms of this agreement.
- Each of the listed partners shall contribute capital to the Partnership as listed below. These capital accounts shall be maintained separately, and shall be regularly balanced in accordance with each partner’s share of the Partnership’s profit and loss.
- All net profits from the Partnership shall be equally shared amongst the partners. In addition, any net losses shall be jointly shared by the partners in a fair and equitable manner.
- Neither of the partners may charge the Partnership’s accounts for time or services rendered to the Partnership. They may, at their discretion, withdraw their share of net profits from their respective credit accounts from time to time.
- The Partners’ capital contributions shall not bear interest.
- The Partners shall equally share responsibility for managing the Partnership. As such, the Partners agree not to enter into additional partnerships, borrow or lend money, or enter into any contract or business position without consent from one another.
- All funds belonging to the Partnership shall be deposited and held at [Partnership.Bank] in an account under the Partnership’s name.
- The Partnership’s financial records shall be fully documented and maintained at the Partnership’s principal location. These records shall be maintained on a fiscal year basis, with the Partnership’s fiscal year beginning as of the month of this small business partnership agreement. A thorough audit of the Partnership’s financial records shall be conducted by a third party once per fiscal year.
- The Partnership may be terminated at either time by either partner. In the event that one or both Partners wish to cancel this small business partnership agreement, all of the Partnership’s assets shall be promptly liquidated. After resolving any debts, each partner shall receive their share of the Partnership’s final net profits in accordance with their respective shares in the Partnership.
- The death of either Partner shall grant the surviving partner the right to purchase the other Partner’s interest in the Partnership or dissolve the Partnership entirely at their discretion.
- Any disagreements or claims related to the Partnership or this small business partnership agreement shall be resolved via neutral arbitration in [Partnership.County] county, [Partnership.State].
By signing below, the listed individuals certify that they have full authority to represent the partners to this agreement, and hereby enter into this small business partnership agreement.