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What is a Partnership Agreement?

A partnership agreement is a written agreement between two or more individuals who join as partners to form and carry-on a for profit business. If your business is a corporation then your "partnership agreement" will be called a "shareholder agreement". If your business is a limited liability company then your agreement will be a "Member Operating Agreement". Irrespective of your corporate structure, some of the issues that should be addressed in your partnership agreement include:

• Percentage of ownership by each partner;
• Salaries and compensation to be paid to each partner;
• Tax structure of the business, i.e., "S corp" or "C corp";
• Right to sell shares or partnership interests;
• Buyouts in the event of franchisee death or disability;
• How disputes will be handled; and
• Requirements for investing additional capital.

Learn More

Below are links to specific information on partnership agreements and partnership disputes in New York or New Jersey that you may find useful:

• Factors to Consider for Your NY or NJ Partnership Agreement
• Partnership Disputes in New York and New Jersey