Legal
General Business Partnership Agreement Template
Set up a business together with a business partnership agreement template that records contributions, profit sharing, roles, decisions, and exit terms in one clear, branded document both partners can sign.
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This Partnership Agreement (the “Agreement”) is entered into on the (day number) day of (month), (year) (the “Effective Date”), by and between (Partner 1 First Name) (Partner 1 Last Name) of (Partner 1 Company), located at (Partner 1 StreetAddress), (Partner 1 City), (Partner 1 State) (Partner 1 PostalCode), and (Partner 2 First Name) (Partner 2 Last Name) of (Partner 2 Company), located at (Partner 2 StreetAddress), (Partner 1 City), (Partner 2 State) (Partner 2 PostalCode). Each is referred to individually as a “Partner,” and collectively as the “Partners.”
Now, therefore, in consideration of the mutual promises and obligations set forth herein, the Parties agree to the following:
1.Partnership
The Parties acknowledge and agree that they intend to establish and operate a partnership for the purpose of (business activities and purpose), to be conducted under the name (partnership name) (the “Partnership”). The Partnership shall be formed and governed in accordance with the laws of the State of (partnership state).
2.Place Of Business
The principal place of business for the Partnership shall be (partnership address), or may be operated virtually as mutually agreed upon by the Partners.
3.Capital Contributions
The Partners agree to contribute capital to the Partnership, which will determine their respective ownership percentages, as outlined below:
(Partner 1 First Name) (Partner 1 Last Name): (Partner 1 capital contribution) — (Percentage ownership)
(Partner 2 First Name) (Partner 2 Last Name): (Partner 2 capital contribution) — (Percentage ownership)
Additional capital contributions may be made by any Partner after execution of this Agreement, provided such contributions are documented in a formally drafted and signed Additional Capital Addendum.
4.Profits & Losses
All profits and losses generated by the Partnership shall be allocated to the Partners at the end of each calendar year according to the ownership percentages outlined above.
5. Binding Authority
Both Partners jointly possess the authority to bind the Partnership to debts, agreements, or engagements with third parties for purposes that support the Partnership’s operations. Any such binding documents or agreements shall be considered valid only when signed by both Partners.
6. Admitting a new partner
New Partners may be admitted into the Partnership upon approval by a majority vote of the existing Partners and through execution of an addendum to this Agreement. Any newly admitted Partner shall be bound by all covenants, terms, and conditions set forth herein.
7. Management
Unless otherwise authorized through a duly executed addendum to this Agreement, all actions and decisions concerning the management, operation, and control of the Partnership shall require the unanimous consent of all Partners.
8. Meetings
The Partners agree to convene at least once every two months, either in person or via teleconference.
9. Title to property
Title to all Partnership property shall remain exclusively in the name of the Partnership.
10. Term
This Agreement shall remain in effect for a period of (number) years, commencing on the Effective Date and concluding on (ending date). The Partners may amend this term through a mutually executed addendum to either shorten or extend the duration of the Agreement.
11. Termination
A Partner may submit a termination request no later than 30 days prior to the desired termination date. The Partnership may be dissolved only upon unanimous agreement of all Partners. In the event of termination, the Partnership’s assets and cash shall first be applied to satisfy all creditors and outstanding obligations. Any remaining assets or funds shall then be distributed among the Partners in accordance with their ownership percentages as set forth in this Agreement.
12. Disputes
In the event of a dispute, the Partners agree to participate in professional mediation conducted by a neutral third-party mediator prior to issuing any notice of Partnership termination. Such mediation may be conducted in person or virtually through real-time audio and video communication.
13. Withdrawal/death of a partner
If a Partner withdraws from the Partnership for any reason, including death or retirement, the remaining Partners may continue operating the Partnership under the same name and governing documents. A withdrawing Partner must provide at least 60 days’ written notice to the other Partners.
The withdrawing Partner shall grant the remaining Partners the first right of refusal to purchase his or her ownership interest. In the event of a Partner’s death, any funds owed to the deceased Partner shall be transferred to the designated beneficiary named in the Partner’s Will or Trust.
14. Involuntary withdrawal
A Partner may be involuntarily removed from the Partnership if they demonstrate mental incapacity; suffer a disability that materially affects their ability to perform their duties; breach their fiduciary obligations; or are convicted of a serious offense, including a felony. Any such removal shall require the unanimous approval of all remaining Partners.
15. Force majeure
A Partner shall be released from the obligations of this Agreement in the event of an act of God or other force majeure event—such as an earthquake, hurricane, flood, fire, war, or any other unforeseeable and uncontrollable circumstance—provided the Partner promptly notifies the other Partners of the situation and takes all reasonable steps to mitigate the event and its impact.
16. Forbidden Acts
No Partner shall:
A. engage in any action that conflicts with this Agreement;
B. perform any act that renders the Partnership’s business activities unduly burdensome or impracticable;
C. grant authority to any third party who is not a Partner; or
D. use the Partnership’s name or logo for purposes unrelated to the Partnership’s legitimate activities.
Any breach of the above prohibitions shall be considered a violation of this Agreement and may result in the offending Partner’s removal from the Partnership.
IN WITNESS WHEREOF, the Parties have executed and signed this Agreement as of the Effective Date.
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General Business Partnership Agreement Template Overview
Partnerships work best when expectations are written down early. This business partnership agreement template gives you ready sections for each partner's contribution, ownership and profit share, roles and responsibilities, decision making, and what happens if a partner leaves, so nothing important is left to assumption. Use it as a general partnership agreement and edit each clause to fit your arrangement.
The agreement generates in your branding and goes out as one link each partner can read and sign on any device. Keep it filed with your other business documents, so the terms are easy to find when the partnership changes.
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Who Benefits From General Business Partnership Agreement Template?
Founders, co-owners, and advisers can set up a partnership agreement for a business with the key terms already laid out.
Co-founder
Agree contributions, ownership, and roles in writing before the work begins, so the partnership starts on a shared understanding.
Business Owner
Bring in a new partner with clear terms for profit sharing and decisions, instead of relying on a verbal arrangement.
Business Adviser
Give clients a consistent starting point for partnership terms, then tailor each clause to the people and business involved.
Finance Manager
Record capital contributions and profit allocation in one agreed document, so the numbers behind the partnership are easy to reference.
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Frequently Asked Questions
Everything you need to know about using this template
It should include each partner's contribution, ownership and profit share, roles, decision making, dispute handling, and how a partner can leave. A business partnership agreement template gives you these sections ready to fill in, so you can record the arrangement clearly and add only the details specific to your partnership.
Yes. Generate the first draft from a short prompt, then use AI to rewrite, tighten, or restructure any section in seconds.
Name the partners and the business, set out contributions and profit share, define roles and decision rules, then cover disputes, changes to the agreement, and exit terms before closing with signatures.
Fully. This agreement is editable end to end in the drag-and-drop editor, so you can add, remove, or reorder clauses to match your partnership.
Yes. Add your own contribution amounts and profit splits straight into this agreement template, then adjust the wording to fit your arrangement.
Yes. Your logo, colours, and fonts are pulled from your website and applied automatically, so the agreement looks on-brand without any manual design.
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