How To Create A Partnership Agreement?

It is very important to have a partnership agreement in place if you are thinking about setting up a business partnership so that the legal liability, financial obligations and duties of each party are spelled out in a clear way. In a few states, it is necessary for the filing of a partnership agreement along with business formation documents. Here are some tips on how to create a partnership agreement in Alabama.

Specify your business type

First and foremost, you have to specify the specific industry that your business belongs to and the kind of business that you are operating. You can describe your business type according to the service that you are offering such as restaurant, clothing store, bookkeeping, entertainment etc.

Mention your business place

The place of your business should be stated in the agreement as well. There are different regulations and rules for partnerships in different states. You have to choose the state that you are running your business in and customize your agreement in order to satisfy its legal requirements.

Offer details about partnership

Using a partnership agreements template, you have to include the name and address of your partnership. It is very important to choose a name for your business that does not sound similar to some other business in your industry area. If businesses have similar names, customers can be confused and so - similar surrounding business names are prohibited by the business name registration laws.

In the agreement you should include the zip code, address, state and city of your partnership. The address is generally the location of the headquarters or main office of your business. In case your business does not operate from specific premises, you can use the home address of any of the partners.

State the duration of the partnership

You have to mention the date on which the partnership will start its operations and how it will come to an end. You may choose to have the partnership ended on a particular date or when the partners take a decision to have the partnership dissolved.

Mention the details of each partner

You have to offer the name and address of every partner and mention whether they are an LLC, trust, partnership, corporation or individual. You should also mention the capital contributions of each partner in the partnership.