When starting a limited company partnership, it is important to have a detailed and well-written partnership agreement in place. This agreement outlines the roles and responsibilities of each partner, as well as the rights and obligations that come with being a partner in the business. Having a partnership agreement can help prevent misunderstandings and conflicts down the line.
While it is always recommended to work with a lawyer to create a partnership agreement, there are also templates available online that can serve as a starting point. Here are some key components that should be included in a limited company partnership agreement template:
1. Partnership Details: Start the agreement by including the names of each partner and the name of the partnership. This section should also specify the purpose of the partnership, its location, and the duration of the partnership.
2. Capital Contributions: This section outlines how much each partner is contributing to the business and how it will be divided. It should also cover how additional funding will be handled if needed.
3. Profit and Loss Sharing: Specify how profits and losses will be divided among the partners. This can be based on capital contributions or other factors such as time invested in the business.
4. Decision-Making: Outline how decisions will be made within the partnership. This can include voting requirements and procedures for tie-breaking.
5. Management and Operations: Detail the roles and responsibilities of each partner in the business. This can cover tasks such as day-to-day operations, financial management, and marketing.
6. Withdrawal and Termination: Specify the conditions for a partner to withdraw from the partnership or for the partnership to be terminated. This section can also cover the procedures for transferring ownership if a partner decides to leave.
7. Dispute Resolution: Include a section on how disputes between partners will be resolved. This can involve mediation or arbitration.
A well-drafted partnership agreement can help protect the interests of each partner and ensure a smooth working relationship. While there are templates available online, it is still recommended to have a lawyer review and customize the agreement to fit the specific needs and goals of the partnership.