What does a Partnership Agreement cover?
A Partnership Agreement is an agreement between two or more parties who wish to enter into business together in the form of a partnership. This agreement covers all of the important aspects of the working relationship, including the contributions of each party, responsibilities, share of profits and winding up.
Unless you have agreed otherwise, all partners are equal and must share the business profits and losses equally. Each partner must pay tax on the proportion of partnership income that they receive in a financial year.
What You Get
Do you need a Partnership Agreement?
Yes, we strongly recommend it! In a partnership business structure, it’s important to have a written document which formalises your agreement and lays the foundations for how you will run your business together. A Partnership Agreement will outline the ground rules in black and white, so everyone is clear on their obligations and responsibilities from the start. Even if you are partnering with a trusted friend or family member, it’s a good idea to sign a contract together.
Frequently Asked Questions
No, you can choose a different partnership name if you like.
You can register a business name to use as your trading name. Otherwise, you can use a combination of the partners names (e.g. John Smith & Jane Smith).
Every situation is different, which is why you need expert advice from a commercial lawyer. We’re small business specialists, so you know you’re in safe hands with us.
We’ll consider your unique situation and let you know if we think this is right for your business.
Our head office is at Inspire Cowork – a coworking space in Sydney – but we also support flexible work for our team. Our lawyers can work from anywhere.
We use technology to come to you, wherever you’re located around Australia. Many of our clients work from home or at coworking spaces, just like us.
We communicate with our clients via phone, email and Zoom – whatever works best for you. There’s no need to meet face to face, but if you’re ever in the area you’re welcome to drop in!
Generally it takes around 2 weeks to complete a drafting project from start to finish.
If you have asked us to prepare more than one document, we’ll try to complete them at the same time to speed things up. If something is urgent or you are working to a deadline, please let us know ahead of time and we will do our best to meet your timeline.