Are you still undecided? Well we all agree you NEED a partnership agreement – the only question left is if this is the right one for you? Remember we have a workshop to help you assess different points that need agreement and then we have a sample plan that you can copy in full and enter information where it is applicable. We do NOT recommend that you delete large passages from the agreement.

7. How will the profit be divided? Is this a 50/50 partnership or is there some other split?

Be aware that partnerships work better if there is equality of return. You will need to assess if one partner is to work more than another and if that is FAIR to all. Partners don’t take wages – they share the profit according to the agreement. If one is a ‘silent’ partner and the other works there could be a great inequality if they decide to do a 50/50 split. Often the one with the money wants to ‘ride on the back’ of the worker, sometimes telling the worker how to do things better or differently and friction could arise because of that. Better options could be

14. Now while you are still friends you need to set up exit clauses . How will you close the business when it is time to move on?

Situation: One partner dies or one partner decides they want to go overseas or take a job or whatever. The reasons are as many as there are partners. Which ever way it goes – it’s decision time. This is where most partnerships have come completely unstuck as they have no mechanism for closure.

Let’s take the death issue first. Who is the beneficiary of the will? If it’s the partner then there really is no issue. If it is anyone else there is an immediate problem. A partnership ceases when one partner dies so the affairs of the business must be ‘finalised’. This does not mean that the business must close but if another partner is to step in then by law a new partnership has been established. This needs a new tax file number as it is a completely different entity from the first partnership. ……………….

10. All the partnership moneys and securities for money shall as and when received be paid into or vested into the Firm bank account and all cheques on such account shall be drawn in the Firm name and shall be signed by any partner or in such manner and by such persons as the partners shall from time to time determine.

16. No partner shall charge the partnership any expense for vehicles, entertainment, professional dues, conventions, charitable contributions, club dues, or any item connected with the operation or maintenance of their home.

Now you have all you need. It’s time to move on. Just press the buy now button. You will have your partnership agreement within a few minutes of payment so you can get on with other tasks.