Creating a partnership agreement is an important first step in any business venture. It lays out the responsibilities of the partners, including ownership percentages, profit and loss responsibilities, and how they will handle disputes. It also addresses important issues, such as the death of a partner or the possibility of another partner leaving the company. Many partners prefer not to consider issues regarding the partnership until they arise, but that could lead to litigation or a failed business.
In the partnership agreement, the legal and fictitious business names of the business and the address of the headquarters are essential. The partnership agreement should state the type of business the business is and how it operates. The partners must also identify their financial responsibilities and the main product or service offered by the business. The partnership contract should also specify the date it was created and when it was established. The purpose of a partnership is to share a common goal.