Are you thinking about starting a business with one or more business partners? If you are setting up the business under a partnership structure, then one of your first steps should be entering into partnership agreement.
What topics may be included in a partnership agreement?
- Purpose of the partnership – ie. to carry on a business, own an asset etc
- Name of the business
- What are the rights, responsibilities and obligations of the partners
- What is each partner bringing to the partnership – ie. expertise, money, stock etc.
- How profits and losses will be divided
- How the partnership will be terminated – ie. on the occurrence on an event, on a set date etc
- How decisions will be made
The Gladwin Legal team can assist with:
- drafting a new partnership agreement suited to your partnership’s needs;
- negotiating your partnership agreement;
- reviewing and amending an existing partnership agreement; or
- advising on conflicts that arise or mitigation of risks.
A partnership agreement formalises the terms of the partnership in clear, certain terms and ensures that all partners are aware of how important business discussions and disputes will be handled. It is also a safeguard to protect the partners, because in a partnership, each partner, in their own capacity are personally liable for the debts of the business.
Even if you are in business with your closest friends or family, a partnership agreement will help create pre-agreed upon rules that you can rely on in times of friction, particularly when as business grows and the decisions being made are complex and have high stakes involved. Also invariably one partner may wish to exit before another partner and the partnership agreement can guide you though this process.
We have extensive experience in drafting, reviewing and advising on partnership agreements. If you have any questions, please contact the Gladwin Legal team at or 1300 033 934.