Partnership agreement template

What a partnership agreement covers

When two or more people go into business together, a partnership agreement is what keeps the arrangement clear as the business grows. Without one, a simple disagreement about money or direction can turn into a serious rift, because there is no written answer to fall back on. A complete agreement settles the important questions before they become arguments.

• The partners and the business. The full names of the partners and the name and purpose of the business.
• Contributions. What each partner puts in, whether money, property, or work.
• Ownership shares. The percentage of the business each partner holds.
• Profit and loss split. How money earned and money lost is divided.
• Decisions. Which choices need a vote and how much agreement is required.
• Roles and duties. What each partner is responsible for day to day.
• Adding or leaving. How a partner joins, exits, or is bought out.
• Dissolution. How the partnership ends and how assets are shared.

This is a general template, not legal advice. Partnership law and tax treatment vary by region, and the way you split ownership and profit can have real financial effects. For anything beyond a simple arrangement, have an accountant or lawyer review the agreement before you sign.

Free partnership agreement template you can copy

Copy the text below, or open it in the fill tool and type your details straight onto the page. Every blank line is a field you complete.

GENERAL PARTNERSHIP AGREEMENT

This Agreement is made on ____________________ [date]

BETWEEN THE FOLLOWING PARTNERS:
  1. [Name] _________________________  Address: ________________
  2. [Name] _________________________  Address: ________________
  3. [Name] _________________________  Address: ________________

1. THE BUSINESS
   Name of partnership: _______________________________________
   Purpose: ___________________________________________________
   Principal place of business: _______________________________

2. TERM
   The partnership begins on ____________ and continues until it is
   ended under Section 9.

3. CONTRIBUTIONS
   Each partner contributes the following:
   Partner 1: $ ________ / property / services: __________________
   Partner 2: $ ________ / property / services: __________________
   Partner 3: $ ________ / property / services: __________________

4. OWNERSHIP SHARES
   Partner 1: ______ %   Partner 2: ______ %   Partner 3: ______ %

5. PROFITS AND LOSSES
   Profits and losses are shared in the same proportion as ownership,
   unless stated otherwise here: _______________________________
   Distributions are made [ ] monthly [ ] quarterly [ ] as agreed.

6. MANAGEMENT AND DECISIONS
   Day-to-day decisions may be made by any partner.
   Major decisions require [ ] a majority [ ] a unanimous vote.
   Major decisions include: borrowing money, hiring, large purchases
   over $ ________, and admitting a new partner.

7. DUTIES
   Each partner will devote the following time and role to the business:
   Partner 1: ____________________  Partner 2: ____________________

8. ADDING OR REMOVING A PARTNER
   A new partner may join only with ______ approval of existing partners.
   A partner who leaves will be paid their share, valued as: ____________

9. DISSOLUTION
   The partnership may be ended by ______ vote of the partners.
   On ending, debts are paid first, then remaining assets are shared
   in proportion to ownership.

10. GOVERNING LAW
    This Agreement is governed by the laws of ____________________.

SIGNATURES

Partner 1: __________________   Date: ____________
Partner 2: __________________   Date: ____________
Partner 3: __________________   Date: ____________

How to fill out the partnership agreement

1. Open the template in the fill tool. Copy the text above, or load it into the fill a PDF tool to type your details directly onto the page.
2. Name the partners and the business. Enter each partner's full name and address, then the business name, its purpose, and its main location.
3. List the contributions. Write what each partner puts in, whether cash, property, or work, and be specific about the value.
4. Set the ownership shares. Assign each partner a percentage. The shares should add up to one hundred percent.
5. Define the profit split and decisions. State how profits and losses are shared, then set which decisions need a majority or a unanimous vote.
6. Fill in the remaining sections. Complete the duties, the rules for adding or removing a partner, and how the partnership can be ended.
7. Sign and date. Every partner signs and dates the agreement. Draw, type, or upload a signature with the sign a PDF tool.
8. Download a clean PDF. Click download. Your entries are flattened into the page so they cannot be easily changed, and there is no watermark.

Deciding contributions and ownership shares

Contributions and ownership are where partnerships most often start on the wrong foot, so settle them with care. List exactly what each partner brings, whether it is cash, equipment, property, or hours of work, and put a value on each so the picture is complete. Ownership shares do not have to match contributions dollar for dollar, because a partner who works full time may earn a larger share than one who only puts in money, but the split should be one everyone agrees is fair. Make sure the percentages add up to one hundred, and write them plainly, since these numbers drive how profit is divided later.

Splitting profits and losses

The profit split is the term partners feel most keenly, so state it clearly. The simplest approach ties profit and loss to ownership shares, so a partner who owns forty percent takes forty percent of the profit and bears forty percent of a loss. Some partnerships depart from that, perhaps paying a working partner a share of profit before the rest is divided, and if you do that, write the exact method here. Decide how often money is actually paid out, whether monthly, quarterly, or when the partners agree, and remember that profit shared on paper still carries tax that each partner handles in their own filings.

How decisions get made

Many partnership disputes are really about decision making, not money. Spell out which choices any partner can make alone, such as everyday purchases, and which need a vote of the partners. Major moves, like borrowing money, taking on a big expense, hiring, or admitting a new partner, deserve a higher bar, so decide whether they need a simple majority or full agreement. Setting a dollar threshold for large purchases, above which a vote is required, prevents one partner committing the business to something the others did not agree to. Clear rules here keep small differences from turning into a standoff that stalls the business.

Planning for a partner leaving

Every partnership should plan for the day a partner wants out, even when everyone is getting along today. Decide in advance how a departing partner's share is valued and paid, whether over time or in one sum, so a difficult exit does not also become a fight over money. Set the approval needed to admit a new partner, since bringing someone in changes the shares for everyone. Writing these rules while relations are good is far easier than negotiating them in the middle of a dispute, and it gives every partner confidence that they can leave fairly if their circumstances change.

Tips for a partnership agreement that holds up

• Make shares add to one hundred. Check that ownership percentages total exactly one hundred percent.
• Value every contribution. Put a clear figure on cash, property, and work so nothing is left vague.
• Set a threshold for big decisions. Require a vote above a dollar amount you agree on.
• Plan the exit now. Write how a partner is bought out before anyone needs to leave.
• Give each partner a signed copy. Everyone should hold the same signed PDF.

Read the whole agreement aloud with all partners present before anyone signs. A term that looked fine on screen often reveals a gap when you hear it, such as a profit split that does not say how often money is paid, or a decision rule with no threshold. Fixing those gaps before signing costs nothing, while sorting them out after a disagreement has started can strain the business and the friendship behind it. Give each partner time to read the full agreement on their own before the group signs, so nobody feels rushed into a term they did not fully weigh.

When your agreement is ready, open the fill tool, type in your details, and download a clean PDF for every partner to sign today. You can also browse other document templates if you need a matching contract or bill of sale. Because everything runs in your browser, the agreement and its terms stay private on your own device.