
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
Complimentary Books and Reports
- Take Your Business from Local Success to National Franchise with The 90 Day Franchise Launch Program
- An Entrepreneurs Guide to Purchasing a Business or Franchise
- ENDWISE: The Guide to Selling Your Business with Peace of Mind
- The New York and New Jersey Partnership Dispute Guide
- Franchise Counsel Program