How to Write a Partnership Form

Rate: (0 Ratings)

What is a partnership?A partnership is just a way a group of people can share the “ups” and “downs” of running a company. This “coopertative relationsip” is often preferred over corporate ownership, although it does have its drawbacks.There is no hard and fast rule to write a partnership form. Everyone potentially involved in a partnership has to know some basic things in order to write a partnership form: how the business will be run, who will be involved and in what capacity, what to do in the event something happens to a prospective member of the group.

Flag Article

Instructions

Difficulty: Moderately Challenging

To Write a Partnership Form

Step1

Find either a legal template or make your own. You must list each partner in the form and notate where they own and operate their business. It might also be a good idea to keep in mind where a “home-office” will be located for the new partnership.

Step2

Write what the partners intend to do for the business and in what way. Also, be sure to incorporate why the partners are getting together. Common legal verbage will say something like “…partners intend to pursue common goals for…”

Step3

Know the duration. Talk about how long the partnership might last. It is a good idea to set specific terms early. Also delineate who will perform either “active” or “advisory” capacities for the business. Inactive partners do not have a voice in how a business will run. They can make no decisions. If someone wants to be responsible for the hiring and firing in the business, write it down.

Step4

Detail which partner will carry specific financial burdens (Who will pay the rent?). If everyone will share the cost, be sure to write this clearly in the partnership form.

Step5

Talk about what to do in the event a dispute occurs between partners. Make everyone agree to arbitration or mediation, for example.

Tips & Warnings

Be sure to write down what will happen in the event something unforseen happens to a partner. No one like to think of this, but many partnerships have been ruined for lack of forsight. Experts say the deceased partner’s lawyer will probably take over temporarily.