Partnership Agreement Template

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A partnership agreement template for business partners that sets ownership stakes, decision rights, profit split, and exit rules in writing.

Use this template to document the terms of a business partnership, including what each partner contributes, how profits are shared, how decisions are made, and how a partner can leave the business.

When To Use

Use when forming a new partnership or updating an existing partnership to ensure expectations are clear and disputes are easier to resolve.

Template

PARTNERSHIP AGREEMENT

This Partnership Agreement ("Agreement") is entered into on [Date] by and between the following partners:

Partner A:
Name: [Partner A Name]
Contribution: [Capital / services / assets]
Ownership Share: [Percentage]

Partner B:
Name: [Partner B Name]
Contribution: [Capital / services / assets]
Ownership Share: [Percentage]

1. BUSINESS PURPOSE
The partners agree to operate the business of [Business Description] under the name [Partnership Name].

2. CAPITAL CONTRIBUTIONS
Each partner will contribute the following to the partnership:
- Partner A: [Cash / equipment / intellectual property / services]
- Partner B: [Cash / equipment / intellectual property / services]

3. PROFITS AND LOSSES
Profits and losses will be allocated as follows:
- Partner A: [Percentage]
- Partner B: [Percentage]

Distributions will be made [monthly / quarterly / annually] after accounting for business expenses and reserves.

4. MANAGEMENT AND DECISION-MAKING
Partner responsibilities and decision authority include:
- Partner A: [Role and duties]
- Partner B: [Role and duties]

Major decisions require [unanimous / majority] approval, including:
- Adding new partners
- Borrowing money or entering into loans
- Selling major assets
- Changing business purpose

5. PARTNER WITHDRAWAL AND BUYOUT
If a partner chooses to leave, the remaining partner(s) may buy the departing partner's interest under these terms:
- Valuation method: [Book value / agreed formula / independent appraisal]
- Payment schedule: [Lump sum / installment plan]
- Notice period: [Number] days

6. DISPUTE RESOLUTION
The partners agree to resolve disputes through good-faith negotiation, mediation, or arbitration before seeking court action.

7. TERM AND TERMINATION
This Agreement continues until terminated by the partners or by law. Upon termination, partnership assets will be distributed after paying debts and obligations.

8. CONFIDENTIALITY
Partners agree to keep business information, customer data, and financial details confidential.

9. MISCELLANEOUS
This Agreement contains the entire understanding between the partners. Amendments must be in writing and signed by all partners.

Signatures:

Partner A: __________________________
Printed Name: _____________________
Date: _____________________________

Partner B: __________________________
Printed Name: _____________________
Date: _____________________________

Example

PARTNERSHIP AGREEMENT

Date: May 10, 2026

Partner A: Jordan Smith (51% ownership, marketing and operations)
Partner B: Priya Patel (49% ownership, sales and customer success)

Contributions: $60,000 cash from Partner A and client relationships from Partner B.

Profit Split: 51% to Partner A, 49% to Partner B.

Major decisions require unanimous partner approval. Buyout terms use book value plus a 10% premium.

Frequently Asked Questions

Should we register a partnership?

Check local laws — many partnerships benefit from formal registration, tax registration, and legal advice.

How are profits shared?

Profits should be shared according to the ownership percentage or another agreed formula specified in the agreement.

Partnership Agreement Template

When To Use

Template

Example

Frequently Asked Questions

Should we register a partnership?

How are profits shared?

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