Business Partnership Agreement Course and Template
Going into business with a partner? Cover all contingencies!
Partnerships are the most risky business structures for new business. Learn more about the other different business structures available.
They are often formed because different people bring different skills, resources and finances and too often these things are not well defined.
A well planned, laid out and discussed partnership agreement will protect both you, your partner/s AND your assets if the partnership fails.
This means you must have all the necessary clauses to cover all contingencies.
Business is not mysterious
Starting a new business is certainly a challenge for lots of reasons. There are
- big upfront costs (which often require some investment capital),
- people to deal with
- market research and planning to make your products and services easy for customer to choose and buy,
- systems to setup to make sure you are compliant with ASIC, ATO, Banks and payment providers like Paypal and Stripe, and
- software to learn for quoting, sales, accounts receivable, reporting, BAS, wages etc
This is something you need to go into with your eyes wide open.
If you are going into business with friends or family or other people you know, then the partnership agreement template is a document that you all discuss and use it to define exactly what each partner is going to contribute.
Who is contributing the money and how?
Money is one of the reasons we go into business in the first place. If we’re lucky we can win some money but if we want a regular and consistent income from our business we need to plan and work at it. If money goes into a business it’s usually in the form of debt (that has to be repaid) or equity (ownership).
If you’re starting a bigger business with experienced financiers you could experience a hybrid way of financing called a convertible note – but we’re not going to get that fancy here!
If the money for the business is a loan then the ATO requires you to have a loan agreement that defines the loan, interest and repayment information.
Although the business startup stage is all about dreams and hopes and sometimes wild promises these financial matters are fairly straight forward and need to be discussed and agreed up by all parties.
PayPal and the Banks Need Evidence!
This agreement has the required clauses that payment processing companies like PayPal and Stripe need as well as ticking all the boxes for an e-bay businesses who need to see evidence of a partnership contract.
Paypal will lock away your income (you won’t be able to transfer the funds to your bank account) until you show evidence of your partnership agreement.
Apart from that, ALL business advisers agree that an agreement should be set up prior to commencement of the business.
Don’t fall for the ‘we’re friends — we don’t need a contract’ line. It’s your life, it’s your money — protect it. Remember this is BUSINESS — it involves personal relationships but this is a business and there are things to do. Your partnership agreement is a contract between you and your partners on the ‘rules of engagement’ in business. And besides, if everything really is hunky dory and legitimate, writing up contracts and the necessary paperwork to cover yourself will just be par for the course.
This is what one customer said about our Partnership Agreement and Notes:
FIVE MOST IMPORTANT REASONS YOU NEED THE PARTNERSHIP AGREEMENT COURSE AND TEMPLATE:
- Start QUICKLY
- It’s comprehensive — covers ALL business aspects
- Includes an interview with small business experts about partnerships
- Low cost
- Training Course Workbook provides education about each clause and encourages an open format for discussion with your business partners.
- Partnership agreement template is in Microsoft Word format for you to edit as you please
Get FREE training on
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Your Official Partnership Agreement
To finalise your partnership agreement, each partner needs an original signed copy of your agreement. Anyone can witness your signature — in fact you can witness each others. Setting up your agreement this way is totally effective as all partners have to be fully involved in the decision making process and then as a consequence they then commit to the partnership principles.
Going into business for yourself is not like being an employee. You need to do your research, discuss the hard parts of the business openly and honestly with your business partners and then make decisions based on things you all agree on.
Taking short cuts at the beginning could come back to bite you later. If you are in a partnership business — even if that partner is your spouse — the ATO will require you to have a partnership agreement.
The Australian Taxation Office Needs Evidence!
The Australian Taxation Office has a requirement of proof of partnership in order to access lower tax rates. A partnership in the eyes of the ATO is between two and 20 parties (persons, companies or combination of both) who share a business interest with the view to making a profit.
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PARTNERSHIP AGREEMENT COURSE AND TEMPLATE
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