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Download partnership agreement template in Microsoft Word format.
Sample Partnership Agreement to Understand Partnerships
For business owners considering a sample partnership agreement, it is crucial to understand the basics of a partnership. In a vast majority of instances, partnerships are initially formed on a simple handshake and the absence of an appropriate agreement is felt only when differences arise and grow to an extent where it threatens the very business. The following discussion is intended to help you understand the basic tenets of choosing a business partner and creating a partnership agreement.
The primary question to which you need find answer is whether you need a partner at all. Once this question is answered in the positive, you start looking for a sample partnership agreement. In choosing the partner, it is critical that you have complete knowledge of his resources financial as well as business resources to promote and sustain the business. In situations where the partner is coming in only on the strength of financial resources, the partnership agreement should be suitably structured to give him profit share/interest etc. and exclude any management control. If you are partnering with some one only based on his connections or ability to promote your business, a better option could be a straight forward contract or hiring arrangement, instead of a partnership. This way, you will keep the individual away from the far reaching implications of a partnership agreement.
Once a decision is taken to bring in a partner or partners, the next step is to ensure that your partner’s skills, work ethics, goals, professional values, motivations and character should be a perfect match with your own trait. In some situations your partner’s skills may vary, but it should complement your own skills and help in improving the business. An example is a marketing expert partnering with a financial wizard.
After you gain comprehensive knowledge on the structure and content of a partnership agreement with the help of a sample partnership agreement, it would be ideal to take time off and spend a day or two at a retreat to understand your partner in-depth and align your expectations between each other. Use the sample partnership agreement to create the questions for your partner and make sure to cover the ground comprehensively.
Depending on the nature and tenure of a partnership, creating a partnership can be tricky. The sample partnership agreement undoubtedly can set the tone for your own partnership agreement. However, the partnership agreement for your business could be a different cup of tea, and you are better off consulting a legal professional specializing in business documents. One way you can strengthen your own agreement is by examining several sample agreements available from the internet and making appropriate notes. Once you are through with this exercise, you can create a sample of what you consider ideal for your business. This can significantly save your time and help the legal professional tune in the partnership agreement with your specific needs and goals.