A partnership is a type of structure where two or more people share ownership in a business. Each partner contributes to all aspects of the business, including money, property, labor or skill, and in return each partner shares in the profits and losses of the business.
The partnership agreement is critical to the success of the partnership because it addresses a wide variety of issues up front, including how future business decisions will be made, how the partners will divide profits, resolve disputes, change ownership (bring in new partners or buy out current partners) and how to dissolve the partnership. For a Limited Partnership the governing agreement is the limited partnership agreement and for a Joint Venture its referred to as the joint venture agreement.
General Partnerships (GP)
This type of structure assumes that profits, liability, and management duties are divided equally among partners. If you opt for an unequal distribution, the...