{"id":4918,"date":"2016-04-04T10:47:49","date_gmt":"2016-04-04T15:47:49","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/incorporation-and-legal-structures\/write-a-partnership-agreement.html"},"modified":"2025-10-27T00:43:00","modified_gmt":"2025-10-27T05:43:00","slug":"write-a-partnership-agreement","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/write-a-partnership-agreement.html","title":{"rendered":"Write a Partnership Agreement"},"content":{"rendered":"\n
\n

Write a Partnership Agreement<\/h1>\n\n
\n
\n By Jade Yeban, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last reviewed\n
\n

Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n

A partnership agreement<\/span> sets forth the rules for two or more people running a business venture. This agreement outlines how to handle division of profits<\/span>, who makes business decisions<\/span>, and how to handle disputes.<\/p>\n\n <\/div>\n\n\n\n

When you start a business with someone else without registering it as a separate business entity<\/span>, you\u2019re in a partnership. It\u2019s like a team where each player has an important role. A business <\/span>partnership<\/span> agreement<\/span> is an important legal document. This agreement lets everyone know what is expected of them. It\u2019s a set of rules for how the business will run and how the partners will work together. Without an agreement, you might have trouble when you make money or if someone decides to leave the team.<\/p>\n

If you are currently involved in a\u00a0partnership<\/a>\u00a0or are thinking about starting up a business as a partnership, you should take the time to think about how to write a partnership agreement<\/span>. Without a set of rules in place, even minor disputes could escalate into major problems that could end up dissolving your partnership. Lastly, if you do not have a partnership agreement<\/span> in place, your partnership may be governed by default\u00a0rules set out by the state<\/a>.<\/p>\n

Need help with business formation? Our trusted partner LegalZoom makes it easy\u2014packages start at $0 + state filing fees.<\/a><\/b><\/em><\/p>\n

What a Partnership Agreement<\/span> Can Do for Your Business<\/h2>\n

In its most basic form, a small <\/span>business<\/span> partnership<\/span> agreement<\/span> will give you a firm understanding of the business relationship that you have with your business partners<\/span>. The partnership agreement<\/span> will spell out how the business profits will be divided amongst the partners. It will detail the rights and responsibilities of the partners. It also lays out the procedures to take when\u00a0a partner leaves the business<\/a>\u00a0and many other important rules and guidelines.<\/p>\n

Remember that if you do not have a partnership agreement<\/span> in place, your partnership will follow default rules. Generally speaking, these rules are known as\u00a0the Uniform Partnership Act<\/a>\u00a0or the Revised Uniform Partnership Act<\/span>.\u00a0Default rules are like a\u00a0one-size-fits-all\u00a0shoe, and they probably won\u2019t work that well for your partnership.<\/p>\n

What You Should Have In Your Partnership Agreement<\/span><\/h2>\n

Although there may be other items that you want to include in your partnership agreement<\/span>, here is a list of some of the most common and prominent items found in partnership agreements<\/span>:<\/p>\n