our business partnership agreement lawyers help businesses and individuals with their legal needs. talin has over a decade of focused experience in business and international law. tim has 20 years of experience representing a wide variety of emerging and established companies in the technology, software, bitcoin and professional services industries. prior to opening her own firm, melissa joined the american medical association (ama) as an assistant general counsel in november 2019. in her role at the ama, melissa supported the cpt and masterfile licensing programs, in addition to supporting the legal needs of the professional satisfaction and practice sustainability business unit.

if you do not currently have a formally documented partnership agreement to regulate how you as partners interact, then you are not alone. having a formal partnership agreement can benefit you in so many ways: if you do not have a partnership agreement in place, your business will be governed by the general provisions of the partnership act 1890. more often than not, these default provisions will not be desirable for you or your business. if these default provisions are unsuitable for you (which in most cases they will be) it is vital that you have a written partnership agreement setting out the terms that have been agreed between you and the other partners.

this can be determined by two main factors: whether they share in the profits and whether they have a right to control the business. control in a partnership can be determined by focusing on three primary factors: ownership, management, and the authority to do business. control in a partnership may also depend on the type of partnership that was formed and the laws of the state, which may vary by state. the main difference between a general partnership and limited partnership is the fact that all of the partners in a general partnership can be held individually and jointly responsible for any debts and liabilities incurred by the partnership.

while this can be a great opportunity to combine the expertise of two entrepreneurs for the ultimate business, each member must understand their roles and responsibilities in the partnership. in a limited partnership, general partners are individually and jointly responsible for all debts and liabilities of the business. familiarizing yourself with the key terms of a partnership agreement is a great way to stay in the know about the legal dealings of your company. however, in some cases, the partnership may only need to be existent for a certain amount of time.