Partnership Agreements: Key Provisions
The terms that keep a partnership working — and prevent the fight that ends it.
Why do you need a partnership agreement?
A partnership agreement is the contract that governs how business partners work together — and how they will part. Without one, state default rules fill the gaps, often in ways the partners never intended (for example, splitting profits equally regardless of contribution). The agreement lets the partners set their own terms.
Key provisions
- Roles and authority — who runs what, and who can bind the partnership;
- Capital and profit-sharing — contributions and how profits and losses are split;
- Decision-making — what needs unanimity versus a majority;
- Exit and buyout — how a partner leaves and how their share is valued; and/or
- Dispute resolution and dissolution.
Preventing the fight that ends the partnership
Most partnership breakups come down to disagreements the agreement could have resolved up front — money, control, and exits. Investing in a clear agreement at the start is far cheaper than litigating a split later.
How Nochumson P.C. helps
Nochumson P.C. drafts partnership agreements and resolves partner disputes. Contact us before you go into business together.
Related articles:
- Buy-Sell Agreements for Co-Owners
- LLC Operating Agreements: What to Include
- Dissolving a Business in Pennsylvania
- How to Start an LLC in Pennsylvania
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