Unlock the Power of eSignature Legitimacy for General Partnership Agreement

How to eSign a document: eSignature legitimacy for General Partnership Agreement

foreign [Music] just about everyone has heard the term partnership two or more people working together for some common purpose when used in the business World though there are a whole lot more specifics and requirements that's where partnership agreements come in we're e-forms the world's largest online database of fillable legal forms in this video we'll cover partnership agreements including what partnership Agreements are the terms they usually contain and what to watch out for when creating or assigning one before diving into Partnerships let's briefly discuss what Partnerships themselves are Partnerships are a type of business organization a business organization is a formal legal entity that is recognized by the state where the business is based you've probably heard of several different kinds of business organizations including corporations and limited liability companies or llc's within the category of Partnerships there are many different subtypes including a limited liability partnership even if those terms sound new you're probably already familiar with these two law firms and accounting offices often stay to an LLP at the end of their names and that's what it stands for what kind of partnership is right for you that's one of the many decisions you'll get into when you make a partnership agreement a partnership agreement is like a charter or Constitution for a partnership it sets out the rules for how the partnership should operate and decides fundamental matters like how voting works and how much money each partner will make like a contract all the parties who sign it are bound to follow it for all of these reasons and more having a solid partnership agreement is essential although partnership Agreements are not required by law in Most states if there is a legal dispute about partnership business it's the first place courts will turn to to settle things to create a partnership agreement that you can customize to meet your situation click the link at the end of this video so what kind of terms do partnership agreements usually contain one of the most important things partnership agreements can do is identify the partners this is the most important for several reasons because it is the opportunity to State each partner's ownership share and capital contributions ownership share describes how much of the partnership a partner owns Capital contributions explain how much money a partner has contributed and may also State how much they will be expected to contribute in the future in some cases ownership share and contributors will determine the partner's profit share in others a partner May contribute less money but have an equal or larger ownership share this can happen when a partner is contributing an idea or patent or when the partner is expected to work more in the future formalizing these things in an operating agreement makes it easier for partners to hold each other accountable another essential thing to include in a partnership agreement is how voting will work the agreement can describe the kinds of questions that need to be settled by a vote the threshold required and whether partners with a higher ownership share get more votes another procedural matter that is usually decided in a partnership agreement is meetings agreements can determine when meetings will be held how frequently they'll take place and what kind of Quorum is required establishing these terms is a key part of formalizing the partnership the menu of partnership operations will vary from State and the partners will generally need to make their choice in a document called The Articles of Incorporation this is different from a partnership agreement and it usually needs to be filed with the Secretary of State's office in the state where the Partnerships being formed for more information on the different kinds of Partnerships and each State's rules check the links in the video description writing a partnership agreement is probably the most cost effective thing you can do to protect a partnership and improve cohesion among the partners click the link to get started creating yours and to learn more about other issues in business law click the Subscribe button [Music]