Business Partnership Agreement - Specifying Responsibilities and Contributions

Gregory James Glaser

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Real Estate Attorney

Contributor Level 12

Posted almost 3 years ago. 2 helpful votes

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When preparing a business partnership agreement, two of the most imporant items are (a) Division of Responsibilities, and (b) Partnership Contributions.

Division of Responsibilities

This item can be prepared as a series of paragraphs, or in a list or table format. I find tables generally work best. Identify each partner, and then match every major labor responsibility of the partnership with a partner. For example: paying bills, accounting, maintaining contracts with suppliers, property upkeep, customer service, government and tax filings, etc. Where partners have overlapping responsibilities, note that.

Next, how are expeses paid? If there is going to be a tailored allocation of costs, then consider identifying each partner and then matching every major cost of the partnership with a partner: insurance, business licenses, utilities, rent, payroll, repairs of equipment, etc.

Partnership Contributions

I recommend using a table.

Here are the columns: (a) Payment by [name], (b) Payment Amount, (c) Funds Recipient, (d) Use designation of funds, if any, (e) Date payment required, and (f - optional) Partnership interest percentage accruing upon payment.

Moreover, wherever one of the partners will make contributions over time at interest (like a loan), use an amortiation schedule, such as this one: http://www.amortization-calc.com/

Additional Resources

www.GregGlaser.com

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