Partnership agreements are not required by law in any state, and you can start a business without one. However, that does not mean you should go without this important document.
A partnership agreement helps prevent conflicts and allows you to face legal challenges confidently. Our transactional matters lawyers can help you thoughtfully draft a bulletproof one.
What Should a Partnership Agreement Include?
Every partnership agreement is different. However, there is some basic information that most partnership agreements tend to include and some common issues that should be addressed.
Here are some suggestions:
- Name of the partnership
- Goals of the partnership
- Duration of the partnership
- Effective date and purpose of the partnership
- Information regarding financials, auditing, and profits
- Contribution requirements and deadlines
- Procedures necessary to dissolve the partnership
It is important to cover as many contingencies as possible. Our attorneys can help with that.
Keep in mind that, in the absence of a partnership agreement, you will need to follow the standard statutes on partnerships in your state. That means you may be bound by certain provisions that do not work very well for your company. By creating a written partnership agreement, you can tailor the provisions in a way that is better suited to your best interests.
Get Help from Our Business Lawyers in Illinois
It can be difficult to draft a partnership agreement that legally reflects the verbal agreements you might have made. Especially in complex business situations, where more than two partners are involved or there are substantial assets, it is best to consult a skilled business attorney for help.
Schedule a free consultation at (312) 625-1679 to learn how our lawyers can assist you with drafting a partnership agreement that will meet your needs and stand the test of time. Markoff Leinberger is located in Chicago, Illinois and serves clients from across the country.