Partnership Agreement

An agreement for two to four partners who run a business together: capital contributions with calculated shares, how profits and losses are shared, management and decisions, leaving and payout, and dissolution. It states plainly that partners can be liable without limit.

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Partnership Agreement: infographic with a sketch of the document, when to use it, common mistakes and the country versions.
19 clauses, 2 parties, 2 signatures.

Country versions

  • International
  • United States *
  • United Kingdom *
  • Korea *
  • Japan *
  • Germany *

* check with local advice

A template, not advice.

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What it is

A partnership agreement is the contract between two or more people who run a business together and share its profits. It answers the questions that cause the most trouble later: how much each partner puts in, how profits and losses are split, who makes which decisions, what happens when someone wants to leave or dies, and how the business is wound up.

This template is for two to four partners. Enter each partner’s contribution (cash, property, or work and services) and the shares of capital are worked out for you. Profits and losses can follow the capital, be equal, or follow percentages you choose, which the form checks add up to 100. It covers management, decisions that need everyone’s consent, accounts and distributions, competing, withdrawal and payout, and dissolution. It also says plainly that, in many countries, partners are liable for the business’s debts without limit and with their own assets, which is the main difference from a company with limited liability. The country notes point to the local partnership rules.

When to use it
  • Two or more people are starting a business together and want their arrangement in writing before money changes hands.
  • Partners contribute different things (cash, equipment, work) and want a fair way to record their shares.
  • You want to agree in advance what happens if a partner leaves, dies or falls out with the others.
  • You are registering a joint business and an office or bank asks for the partnership contract.
How to fill it in
  1. Enter the name of the partnership, what the business does, its main place and the start date.
  2. Choose the number of partners and fill in each one; your saved personal details go into Partner A.
  3. Enter each partner’s contribution and its kind; the shares of capital are calculated.
  4. Choose how profits and losses are shared. If you pick your own percentages, make them total 100.
  5. Decide on management, the spending limit above which everyone must agree, and how often profits are paid out.
  6. Set the notice for leaving and how a leaving partner is paid, add a non-compete if wanted, pick the country and print or download.
Common mistakes
  • Assuming a partnership protects your personal assets; in many places it does not.
  • Leaving the profit split vague, so that “equal” or “by capital” is argued about later.
  • Not valuing work or equipment contributions in writing, which makes the shares impossible to prove.
  • Having no exit rule, so that a partner who wants out can only dissolve the whole business.
  • Writing a long non-compete that a court will not enforce.
  • Forgetting that taxes, registrations and licences are separate duties.
Steps at a glance
  1. Fill in
  2. Check the preview
  3. Save as PDF, Word or Excel
Country versions

Pick the country you need. Each version uses the wording and layout commonly found there; a version marked “check with local advice” should be read by someone who knows the local rules before it is used.

  • International (XX): Written in English, Korean, Japanese, German
  • United States (US): Written in English – check with local advice
  • United Kingdom (GB): Written in English – check with local advice
  • Korea (KR): Written in Korean, English – check with local advice
  • Japan (JP): Written in Japanese, English – check with local advice
  • Germany (DE): Written in German, English – check with local advice

Designs

The same form in several designs. The fields and the wording stay the same; only the look changes.

  • Formal
  • Executive
  • Classic
  • Plain (black and white)
  • Minimal
  • Ledger
  • Modern
  • Compact
  • Side band
  • Warm
  • Boxed form
  • Banner

Your details fill it in

Fields that ask for your name, address or company details are filled from My details, so you do not type them again; you can still change any field for one form. Signed in, your details stay in your account; otherwise they stay in this browser only. A passport, identity or social security number is never saved.

Questions

Are partners personally liable for the business’s debts?
In many countries, yes, and without a limit: a creditor can ask any partner for the whole debt. That includes debts another partner took on for the business. A company with limited liability works differently. The agreement says this plainly so nobody signs without knowing; ask an adviser whether another form fits you better.
How are the capital shares calculated?
Each partner’s contribution is divided by the total capital. Contributions in work or equipment are included at the value you enter, so agree that value in writing. If you choose “in proportion to capital”, profits follow these shares. If you choose your own percentages, the form checks that they total 100.
What happens if a partner dies or leaves?
Under this agreement the business continues among the remaining partners, and the partner who left, or their heirs, are paid the value of the share within the period you set, based on the valuation method you chose. If only one partner would remain, the partnership ends. Some countries’ default rules differ, which is why the agreement states its own.
Can I sign it electronically?
In many countries a partnership agreement can be signed electronically, but rules differ and some registrations ask for paper. QuoteBill also offers e-signing for contracts; check what your country and the office you register with accept.
Is this template legal advice?
No. It is a general template in plain language. A partnership can affect your personal assets and taxes, so have a qualified adviser review it before you sign.
Is this form legal, tax or accounting advice?
No. It is a template: it gives you the usual structure and wording, not advice. Rules differ by country and case, so have someone qualified read anything that matters before you sign, send or file it.
Which countries and designs does it come in?
It comes in 6 country versions: International, United States, United Kingdom, Korea, Japan, and Germany. 12 designs.

Want it signed online instead? With E-Contracts you fill in the sample contract and send it by secure link for a simple electronic signature. Open the Partnership agreement sample contract

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A form is a template, not legal, tax or accounting advice. Rules differ by country and case.