A Partnership Agreement is an essential contract between two or more individuals who wish to join forces in order to establish a business. This agreement outlines the roles and responsibilities of each partner, their ownership percentage in the company, how decisions are made, and how disputes will be handled. It is important for any partnership to have this document in place so that all partners are clear about what is expected of them.
By having a Partnership Agreement, partners can avoid potential misunderstandings and disagreements since everything has been outlined clearly from the start. Additionally, outlining the legal aspects of each partner’s role within the partnership, prevents any one individual from taking advantage of another’s hard work or contribution without being held accountable. A Partnership Agreement can provide peace of mind as well as financial security for all parties involved.