In our last article, we identified the top five most commonly requested business contracts, and discussed LLC operating agreements. In this article, we will discuss the next contract in the series: Partnership agreements.
Partnerships differ from LLC’s and corporations. Often referred to as ‘general partnerships’, this type of business entity is similar in nature to a sole proprietorship in that no formal filings are needed to establish a partnership. It can simply be defined as a joint venture undertaken by two or more people.
Unless you have a written partnership agreement that says otherwise, Pennsylvania law generally considers partners to be equal as to both assets and liabilities. If creating an unbalanced ownership or liability scenario is your objective, then a written partnership agreement is critical to clearly establish each partner’s respective interest or limited certain partners’ liability.
The partnership agreement should also recite each partner’s contributions, rights, and responsibilities, if any. Like an LLC operating agreement, putting the important points in writing can help partners avoid disputes and costly litigation in the future.
To have an attorney draft or review your Pennsylvania partnership agreement, or for help with another matter related to your business, call Scolieri Law Group, P.C. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can help you navigate contracts and other matters affecting your business. Contact us today at (412)765-0546 or firstname.lastname@example.org.