Written Partnership Agreement Requirements

Check with your state`s Secretary of State/Department of Affairs for the requirements of the Partnership Agreement. “Partnership agreements need to be well written for a variety of reasons,” said Laurie Tannous, owner of Tannous & Associates Inc. “One of the main reasons for this is that the desires and expectations of partners change and vary over time. A well-written partnership agreement can meet these expectations and give each partner a clear map or plan of what the future holds. Each partner has a personal interest in the success of the company. Because of this personal interest, it is generally assumed that each partner has the power to make decisions and enter into agreements on behalf of the company. If this is not the case for your company, the partnership agreement should describe the specific rules of the power granted to each partner and how business decisions are made. To avoid confusion and protect everyone`s interests, you need to discuss, determine and document how business decisions are made. For more information on terminating business partnerships in Georgia, see “My partner wants to leave – now what?” This article explains seven reasons why your company should have a written partnership agreement. The decision to start a business is an important decision in itself, but the decision to team up with a partner is completely different. If you plan to start a business with a partner, you should structure your business as a general partnership. Don`t be tempted to leave the terms of your partnership to these state laws.

Because they are designed as uniformly uniform fallback rules, they may not be useful in your particular situation. It is best to put your agreement in a document that sets out in detail the points on which you and your partners have agreed. Other situations that should be addressed in a partnership agreement are competitive refinement and confidentiality. Provisions that prevent a partner from sharing the company`s confidential information with others or seeking employment with a competitor are crucial for a company to maintain a competitive advantage and protect the investments of all partners. When entering into a business partnership, it`s natural to want to avoid unpleasant discussions about a future breakup that might never happen. No one wants to think about a possible breakup when a relationship is just beginning. However, business separations happen all the time and happen for many reasons. Each of these reasons can affect you personally and professionally. Therefore, regardless of the reason for the separation, the starting process and procedures should be set out in the Partnership Agreement. It is also wise to include language that deals with redemptions and transfers of responsibility in the event that a partner is disabled or deceased. .