Defining Points in a Partnership Agreement Template

You are venturing into a business partnership with your best friend, your spouse, or your cousin. If you think you are safe from all the business conflicts that arise in most start up ventures because you know your partner very well, think again. Most conflicts and legal contests are because of this ignorant belief. You have to protect not only yourself but also your partner. Hence it is best for you to draw up a partnership agreement template before you decide to commit yourself.

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There are a few points you need to consider before you look into drawing up a partnership agreement template. These are the issues you need to take notice of and generate set solutions to.

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• Company Types- All partners should make it clear the possible involvement of the primary business in the future. They should find the ways or possibilities from such idea. This will prevent future conflicts with regards to business growth.

• Structure of the organization- The involved parties should include a well thought organization structure. This should include roles and responsibilities of each partner. Before the start of the business, both parties should have a clear understanding of what they should bring in once the business operates.

• Company Key Objective- For a company to grow, there should be a starting point and a goal. Setting a defined key objective for the business to look forward to is a motivation that will help you grow. It is not set to one aspect only; it may involve bigger financial aspirations or others.

• Dispute Settlement- Two minds working will not always be in harmony with each other. There is always a possibility of conflicts of interests. Foreseeing possible scenarios and setting settlement to solve them should be included in the partnership agreement template. It is crucial to any partnership because it will regulate conflicts before it destroys the business.

• Profit Division- The financial aspect of a business is often the root of all issues. Before going into the commitment, clearly define the profit sharing process and percentage of all parties. This may be based on what each partner will bring into the table- skills, finance, or other wise.

• Partner Compensation- This is with regards to the skill set or manual labor brought in by a partner to the business. It may be likened to an employee compensation, wherein the person is paid for the service he or she renders to the business. If the partner is also the operations manager, the compensation for that job position should be clearly established in the partnership agreement.

• Ownership Issues upon Death of a Partner- A clearly established process of endorsement of ownership, role, and responsibility should be included in the agreement should one of the partners become incapacitated or dies.

• Division of Assets- In the event that a partner or both partners wants to dissolve the business, there should be a clear solution in the partnership agreement template as to how the assets should be divided and how much will go to each partner. Since this will mainly involve financial issues, it is best to set things clearly as this will cause great havoc if not settled.

Defining Points in a Partnership Agreement Template

Gerri Mason is an author of diverse legal documentation. Due to his extensive research and work experience, he is able to share his in-depth knowledge with many people. He has helped draft partnership agreement templates for individuals all over the country. Because of his background in legal assistance, Gerri is able to impart his knowledge about partnership agreement template to online visitors.

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