Partnership Agreement: What Is It And Do You Need One?

Dana Miranda is a Certified Educator in Personal Finance® who's been writing about money management and small business operations for more than a decade. She writes the newsletter Healthy Rich about how capitalism impacts the ways we think, teach and.

Dana Miranda CEPF®, Small Business Expert Writer, author of YOU DON'T NEED A BUDGET

Dana Miranda is a Certified Educator in Personal Finance® who's been writing about money management and small business operations for more than a decade. She writes the newsletter Healthy Rich about how capitalism impacts the ways we think, teach and.

Written By Dana Miranda CEPF®, Small Business Expert Writer, author of YOU DON'T NEED A BUDGET

Dana Miranda is a Certified Educator in Personal Finance® who's been writing about money management and small business operations for more than a decade. She writes the newsletter Healthy Rich about how capitalism impacts the ways we think, teach and.

Dana Miranda CEPF®, Small Business Expert Writer, author of YOU DON'T NEED A BUDGET

Dana Miranda is a Certified Educator in Personal Finance® who's been writing about money management and small business operations for more than a decade. She writes the newsletter Healthy Rich about how capitalism impacts the ways we think, teach and.

CEPF®, Small Business Expert Writer, author of Y. Rob Watts Managing Editor, SMB

With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.

Rob Watts Managing Editor, SMB

With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.

Written By Rob Watts Managing Editor, SMB

With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.

Rob Watts Managing Editor, SMB

With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.

Managing Editor, SMB Jane Haskins, J.D. contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

Jane Haskins, J.D. contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

Jane Haskins, J.D. contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

Jane Haskins, J.D. contributor

Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation. She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.

Updated: Jun 18, 2024, 8:46am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Partnership Agreement: What Is It And Do You Need One?

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If you’re starting a business with one or more partners, you want to get on the same page and be clear upfront about how the business is going to operate—and how you’ll share the money you make. The best way to do that is through a legal document called a partnership agreement.

What is a Partnership Agreement?

A partnership agreement is a legal document that dictates how a small for-profit business will operate under two or more people.

The agreement lays out the responsibilities of each partner in the business, how much of the business each partner owns, and how much profit and loss each partner is responsible for. It also includes rules about how you’ll manage the business and addresses potential scenarios that could affect the business, such as death of a partner or how a partner can leave the company.

The purpose of a partnership agreement is to get in writing answers to common questions that could arise in the business, so you and your partner(s) don’t find yourselves at odds down the line.

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CEPF®, Small Business Expert Writer, author of YOU DON'T NEED A BUDGET

Dana Miranda is a Certified Educator in Personal Finance® who's been writing about money management and small business operations for more than a decade. She writes the newsletter Healthy Rich about how capitalism impacts the ways we think, teach and talk about money. She's the author of YOU DON'T NEED A BUDGET (Little, Brown Spark, 2024).

Managing Editor, SMB

With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.

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