What do you include in a partnership agreement?

2 Replies

I am in the process of forming a LLC with my buddy and we are going to start our rental portfolio. We want to set up a partnership agreement for how money is spent and divided. What are the things that are a MUST when it comes to the agreement? What are your experiences when it comes to a partnership agreement?

Here are few basics : 

% of ownerships

Dispute resolution, etc

Death/Disability of a partner

Profit/Loss allocation and capital contribution

I would recommend consulting a good attorney to get a list of things that you and your buddy need to discuss and have a framework to draft an operating agreement. Agreement will be affected by number of other factors as well so its better to get a legal consultation. 

Originally posted by @Bryan Sullivan :

I am in the process of forming a LLC with my buddy and we are going to start our rental portfolio. We want to set up a partnership agreement for how money is spent and divided. What are the things that are a MUST when it comes to the agreement? What are your experiences when it comes to a partnership agreement?

 It is very important to get everything in writing just to avoid misunderstanding and one person or the other forgetting what was agreed to in the beginning.  The more you can flesh out yourselves the better.  If your lawyer has to do a lot of the drafting the price will rightly go up.

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