each partner contributes to all aspects of the business, including money, property, labor or skill, and in return each partner shares in the profits and losses of the business. for a limited partnership the governing agreement is the limited partnership agreement and for a joint venture its referred to as the joint venture agreement. if you opt for an unequal distribution, the percentages assigned to each partner must be documented in the partnership agreement. limited partnerships (lp)this type of structure is more complicated than gps. the general partner of an lp will be responsible for the management decisions and will be liable for actions of the partnership. partners in a joint venture can be recognized as an ongoing partnership if they continue the venture, but they must file as such. to form a partnership, you must register your business with your secretary of state’s office. in general, the legal name for the partnership is the name given in the partnership agreement.

family members and friends usually venture into a new restaurant business since the burden of starting and maintaining this type of business can be shared, and having more heads than one can result in better business making decisions, and making creative strategies to boost the business. however, partners can mitigate those challenges by making an agreement where they state all the provisions and terms of opening and operating a restaurant business. the first part of the agreement must give details about the company such as its name, type of corporation, and purpose of the partnership should be included. don’t forget to include other information such as the nature, location, office hours, and purpose of the business, any special licenses or permits obtained to do the business. discuss the type of partnership and the status of each partner. include in the agreement the percentage or amount of equity that each partner owns of the company.

regardless of the type of business entity you create, you should always have a written agreement between or among you and your co-owners. regardless of the type of business entity you form, here are some issues that should be addressed in your agreement: 1.  first, the founders of the business need to decide who will own the business and in what shares. in all cases, the owners should clearly provide in the agreement how various types of decisions will be made and who gets to vote on which decisions.