Free Arizona Partnership Agreement

Arizona Partnership Agreement

A Partnership Agreement is also known as:

    • General Partnership Agreement

    • Business Partnership Agreement

    • Partnership Contract

When entering into a business partnership with friends, family, colleagues or none of those, creating a Partnership Agreement that details the rights and responsibilities of the partners and how the business will be run, is one of the most important steps you can take to help make your partnership a success. Unlike handshakes and word-of-mouth agreements, the Business Partnership Agreement is legally binding and enforceable.

Free Arizona Partnership Agreement Ready in Minutes

We make it quick and easy to create a Partnership Agreement. Use our free Arizona Partnership Agreement template to create, download, print and email your Agreement in minutes. Simply fill in the information above to get started, or read on for more information.

What Information is Included in a Partnership Agreement?

While there are different types of partnerships (limited and general partnerships), the information contained here applies to a General Partnership Agreement, which includes the following;

    • Name and the purpose of the partnership

    • Names and contact information for partners

    • Start date and the duration the partnership is expected to last

    • Where you will be doing business

    • Individual partner contributions

    • How the profits and the losses of the partnership will be distributed

    • If the partnership will permit new partners in the future

    • Details of financial reporting, as well as the day-to-day management matters

A Partnership Agreement also includes other clauses that are typically the biggest causes of contention.

Management and Voting

Will one of the partners take on the role of Managing Partner or will the partnership hire an independent Manager for the day-to-day operations of the business? What issues will require the partners to vote and what vote tally is required? Voting powers of the partners can be assigned in three ways:

    • Voting powers proportional to the partners’ capital contributions

    • Voting powers based on the profit distribution

    • Equal voting powers to all partners (one vote per partner)

Tax Elections

For tax purposes, the IRS treats all partnerships as taxable entities, with auditing done at the partnership level rather than having individual audits of each partner. The Partnership Contract should address specific tax elections and designate the partner responsible for handling the tax matters on behalf of the partnership, known as the Tax Matters Partner.

Partnership Withdrawal/Buyout

The Partnership Agreement will specify the conditions to be met by a partner wishing to withdraw from the partnership, including the following:

    • Whether or not the remaining partner(s) can buy out the rights of the departing partner

    • Will the partnership consent to new partners in the future? What are the conditions to be met by the new partners?

    • Steps to be taken in the event of the death of a partner

Partnership Dissolution

The Partnership Agreement also outlines the circumstances under which the partnership would dissolve, such as by agreement among the partners, upon completion of a project or if the partnership’s objective is met, death of a partner, or bankruptcy of partnership or partner.

Dispute Resolution

What are the steps to be taken in the event of a conflict between partners? The Partnership Agreement may have a mediation clause that compels the partners to a third-party professional mediator to review and resolve the conflict.

Our site helps you create an Arizona Partnership Agreement. We offer free on-line templates and Partnership Agreement samples that make it easy. Simply fill in the information above to get started.

Whether you live in in Tucson, Scottsdale, Mesa, Phoenix, Tempe, Peoria, Kingman, Grand Canyon Village, Prescott or any other city in Arizona, you can use our free legal forms.