Small Business Partnership Agreement Template

Definition

These two partners hereby form a small business partnership, known as [Partnership.Company] or simply “The Partnership.” The principal location of the Partnership shall be as follows: [Partnership.StreetAddress][Partnership.City][Partnership.State][Partnership.PostalCode][Partnership.Phone]​

Duration

The Partnership shall commence as of the date of this small business partnership agreement, and shall continue until cancelled pursuant to the full terms of this agreement.

Capital Contribution

Each of the listed partners shall contribute capital to the Partnership as listed below. These capital accounts shall be maintained separately, and shall be regularly balanced in accordance with each partner’s share of the Partnership’s profit and loss.

Distribution of Profits and Losses

All net profits from the Partnership shall be equally shared amongst the partners. In addition, any net losses shall be jointly shared by the partners in a fair and equitable manner.

Partnership Accounts

Neither of the partners may charge the Partnership’s accounts for time or services rendered to the Partnership. They may, at their discretion, withdraw their share of net profits from their respective credit accounts from time to time.

Interest

The Partners’ capital contributions shall not bear interest.

Responsibilities of Partners

The Partners shall equally share responsibility for managing the Partnership. As such, the Partners agree not to enter into additional partnerships, borrow or lend money, or enter into any contract or business position without consent from one another.

Allocation of Funds

All funds belonging to the Partnership shall be deposited and held at [Partnership.Bank] in an account under the Partnership’s name.

Financial Records

The Partnership’s financial records shall be fully documented and maintained at the Partnership’s principal location. These records shall be maintained on a fiscal year basis, with the Partnership’s fiscal year beginning as of the month of this small business partnership agreement. A thorough audit of the Partnership’s financial records shall be conducted by a third party once per fiscal year.

Termination

The Partnership may be terminated at either time by either partner. In the event that one or both Partners wish to cancel this small business partnership agreement, all of the Partnership’s assets shall be promptly liquidated. After resolving any debts, each partner shall receive their share of the Partnership’s final net profits in accordance with their respective shares in the Partnership.

Partner Deaths

The death of either Partner shall grant the surviving partner the right to purchase the other Partner’s interest in the Partnership or dissolve the Partnership entirely at their discretion.

Disagreements Amongst Partners

Any disagreements or claims related to the Partnership or this small business partnership agreement shall be resolved via neutral arbitration in [Partnership.Country] county, [Partnership.State].

Confidential Information

Both parties agree that all information exchanged during the course of the contract will be treated as confidential. The partners assert and affirm to each other that each partner will take credible measures and all reasonable effort to ensure that such information remains withheld from the general public. Confidential information does not include information that has been revealed to the public by the consent of both partners. Any information about the work processes, patents, workflows, and industry secrets, will be treated as confidential.

No Modification Unless in Writing

If any partner wishes to modify or terminate any part of the contract, or make any changes to any existing business operations, they must let the other partner know in writing. The modification/termination will not be considered valid unless it has the agreement of both partners. (Or, in case of more than two partners, a majority vote).

Reasonable Effort

All partners agree that they will, to the best of their ability, make a reasonable effort to ensure that they consistently create work they are proud of. This is not only limited to the work they produce for [Partnership.Company], but also a code of conduct to be followed in the way they present themselves in front of the public, business partners, and employees.

Non-Compete

All partners agree that for the duration of this contract, or until the time they are no longer associated with [Partnership.Company], they will not engage in any events (unless for advertising purposes), or be a part of any company that operates in the same niche as [Partnership.Company]. It is expressly forbidden for either partner to share trade secrets with competing firms.

Dissolution

Dissolution of the Partnership may occur once all partners or a majority of partners agree to dissolve the Partnership, or at the end of the stipulated term of this Partnership, should an end date be part of this agreement. Any assets and liabilities arising from the dissolution will be shared equally between both partners.

Enforceability

If any part of this agreement is considered null and void (for any and all reasons), the rest of the agreement will still be considered enforceable.

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Disputes

In case of any disputes between parties, all parties agree to peacefully and amicably reach a settlement. If no settlement is reached, or if a settlement amount isn’t agreed upon by both parties, one party or both parties may seek legal recourse in a court of law in [Partnership.County], [Partnership.State].

Professional Relationships

All parties agree to enter into the agreement by adhering to a strictly professional relationship. If any parties are found to have workplace relationships that have not been communicated to and recognized by the HR department, then they may be asked to terminate their partnership, or be faced with a penalty.

Distribution of Assets and Liabilities

All partners agree that all losses or liabilities, just like assets and profits, will be divided equally amongst all partners. All business partners will routinely undertake a plan of action on how to mitigate liabilities, losses, and overall risk.

Terms and Conditions

All partners agree to accept all terms and conditions mentioned in this agreement, and give their consent to move forward, without needing any modifications in the agreement.