in simpler terms, a profit sharing agreement is like a retirement plan that provides employees of a company a share of the profits. for this, you have to prepare a profit sharing agreement that will specify the terms and conditions of the contract. when you make the decision that you want to share a specific percentage of your profits with your employees, you will need to come up with a formula to use for deciding the amount. the responsibility of drafting an agreement with precision and clarity lies with you as the employer.

a revenue share partnership agreement is a document signed by all partners in a partnership that has procedures when distributing business profits or losses.3 min read a revenue share partnership agreement, also known as a profit-sharing agreement, is a document signed by all partners in a partnership that outlines the criteria to be followed when distributing business profits or losses. partners without a written agreement that sets out how they will share any profits or losses in the years to come are bound to have conflicts. the partners should try to anticipate every scenario and use the agreement to explain the ways in which profits and losses will be shared in such scenarios.