Need a Business Structure? Consider a Partnership Agreement
A company partnership contract is put in place between two individuals or more, discussing the conditions of their association. A business partnership agreement formulates the company and firms up the rules for the partner’s relationship. The contract should be explicit in terms of the nature of the association and the differing roles.
There are varying kinds of business alliance contracts in existence. The different kinds would be general partnerships in addition to limited partnerships.
The general alliance offers two or more partners sharing in the business’s responsibility. This extends to not only the general alliance’s company shares but their personal possessions as well.
A limited partnership differs since it limits the limited partner’s responsibility to his/her portion. A general partner whom would be responsible for any unmet responsibilities which might arise handles limited alliances.
The more current business entity is a limited liability alliance that allows a general alliance to decrease her liability.
A business partner contract will contain guidelines for the name, duration, and company purpose of said alliance. The agreement also spells out the amount of contribution to be made by the particular partners. Lastly, preparations need to be made for the transfer of partnership interest and dissolution as a result of demise or disability of the partner.
The buy-sell contract is an arrangement that allows for the procurement of the alliance’s portions from his/her heirs. This would be utilized in a manner to carry on the company should death, disablement, or divorce happen. A buy-sell contract specifies monies used to buy the quitting partner’s interest as well as spreads the interest with the continuing partners.
Partnership agreements should conform to the laws of that state wherein a partnership is created, including filing a DBA if necessary. Many sources provide information regarding required verbiage that must be contained within said contract. A qualified legal professional can assist in drawing up the company partnership contract. There are web sources as well as services available that assist by drawing up contracts which are invaluable.
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