A partnership agreement is a document that you and your new business partner sign when you start your business. You can think of it as a contract that helps the two of you know what you are officially supposed to do within this business relationship.
As such, every partnership agreement has to be unique. But there are a few major topics that you generally want to address.
First and foremost, you want to make sure that you’re both on the same page with how much money you’re supposed to earn or be paid from the business. Some business owners take a salary, while others simply divide the money that the company earns. Anything is possible, but you need to know that you’ve both agreed to it at the start.
You also want to consider what your role is going to be with the business. Is either one of you in charge? Do you have different tasks and duties to accomplish? Having these roles well-defined can help things go smoothly.
Finally, the partnership agreement should address what happens if someone wants to leave the business. You may also want to talk about what you’ll do if there is a serious dispute. Say that one of you wants to leave and the other ones to keep running the company. What steps do you need to take? Addressing this all upfront can make it easier if it becomes necessary.
As you start your company, be sure that you get all of the paperwork in place. The more you do in advance, the lower the odds you’ll have serious complications later.