Is this for an LLC or a general partnership?

This template is written for a general partnership between two partners. If you've formed an LLC, you'd typically want an operating agreement instead — a different document with its own formal requirements.

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Partnership Agreement

Partnership Agreement Template — Formalize a Business Partnership

Q: What happens if a partner wants to leave?

The template includes a withdrawal and dissolution section, and can optionally add a state-aware non-compete for departing partners where that's actually enforceable.

A formal agreement between two partners forming or operating a business together — ownership, responsibilities, profit split, and what happens if one partner leaves.

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~5 min · 10 short questions · AI-generated documents are not legal advice.

What Is a Partnership Agreement?

A partnership agreement is a contract between two (or more) people who are forming or already running a general partnership together. It covers ownership percentages, how profits and losses are split, each partner's responsibilities, decision-making, and — critically — what happens if a partner wants to leave or the partnership needs to dissolve.

When to Use This Template

Two or more people are starting a business together and haven't formalized ownership terms
An existing informal partnership needs to put terms in writing
You need clear rules for what happens if a partner wants to exit
Setting a profit/loss split that isn't automatically 50/50

What's Included

Ownership percentages
Profit & loss allocation
Partner responsibilities & decision-making
Capital contributions
Withdrawal & dissolution
Optional post-withdrawal non-compete (state-aware)

Glossary

General Partnership: A business run by two or more people who share ownership, profits, and — importantly — personal liability for the business's debts, without the liability protection an LLC or corporation offers.
Capital Contribution: What each partner puts into the business to get it started or keep it running — cash, property, equipment, or services, valued and recorded in the agreement.
Buyout: The process (and price formula) for one partner purchasing the other's share of the business, typically triggered by withdrawal, death, or disagreement.
Dissolution: The formal process of ending the partnership and winding down the business — settling debts, distributing remaining assets, and closing accounts.
Managing Partner: A partner given day-to-day decision-making authority, as opposed to requiring every partner's sign-off on routine matters — one of several management structures a partnership can choose.

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Frequently asked questions

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