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ST-07
Partnerships SCORE
Chapter 570 |
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Points to consider when making A Partnership Agreement |
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While
these are not the only considerations that should be explored when forging an
agreement, they are
basic. Not every point may be required in your agreement. We suggest that for
best results you consult a lawyer. 1.
Name of the Partnership 2.
Duration of the Partnership - number of years or "Until Dissolved" 3.
Location of the offices 4.
Capital contribution of each partner 5.
Whether Partners may make additional contributions 6.
The level at which the Capital Account of the Partnership must be maintained 7.
Participation of each partner in profits or losses 8.
Salaries, if any, to be paid to Partners and whether or not these salaries
are to be treated as Expenses
in distributable profits 9.
The amount of any regular drawings against profits 10.
Duties, responsibilities, and sphere of activities of each partner 11.
The amount of time to be contributed by each partner 12.
Prohibition of outside business activities by Partners that would be in
competition with the 13.
Who is to be the managing Partner and whose decision will prevail in case of
a tie or a dispute? 14.
Procedure for admitting new Partners 15.
Methods of admitting Junior Partners, without capital, if such a procedure is
considered desirable 16.
Method of determining the value of goodwill in the business, in case of
death, incompetence, or
withdrawal of a Partner or dissolution of the Partnership for any other
reason 17.
Methods of liquidating the interest of a deceased or retired Partner 18.
Age at which a Partner must withdraw from active participation, and
arrangements for adjusting the
salaries and equity 19.
Whether or not the surviving Partners shall have the right to continue using
the name of a deceased
Partner in the Partnership name 20.
Period of time in which retiring or withdrawing Partners may not engage in a
competing business 21.
Basis for expulsion of a Partner, method of notification of expulsion, and
the-disposition of any losses
that arise from the delinquency of such a Partner 22.
How will the event of protracted disability of a Partner be handled? 23.
Whether the Accounts are to be kept on a Cash or Accrual basis, and if on the
Cash basis, the
method of compensating Partners who withdraw or retire for income realized on
services rendered, but
not invoiced, at the time of their withdrawal or retirement 24.
The Fiscal Year of the Partnership 25.
Whether or not interest is to be pain on the debit and credit balances in the
Partner's accounts 26.
Where the Partnership cash will be deposited and who may sign checks 27.
Whether or not all Partners shall have access to the Book of Accounts 28.
Under what conditions Limited Partners may be accepted into the firm, and, if
so, who shall be designated
as the General Partner 29.
Prohibition of the Partners pledging, selling, hypothecating. Or in any
manner transferring their interest in the Partnership except to other Partners 30. Identification of material contracts or agreements affecting the liability or operation of the partnership |
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