Free Connecticut Partnership Agreement

Partnership Agreement in Connecticut

  • A Partnership Agreement is also known as:

    • Business Partnership Agreement

    • General Partnership Agreement

    • Articles of Partnership

    • Partnership Contract

When entering into a business partnership in Connecticut, creating a written Partnership Agreement is one of the most important steps you can take to ensure the success and survival of your business partnership. Verbal and handshake agreements are not enforceable. A Partnership Agreement is legally binding and can save the partnership and the partners a lot of time and trouble as you move forward, by setting forth the rules that will govern your partnership, the roles and relationships of the parties involved, as well as their obligations and what is expected of them.

Free Partnership Agreement Template—Ready in Minutes

You do not need a lawyer to create a Connecticut Partnership Agreement. Our free Partnership Agreement template makes it quick and easy to create a Business Partnership Contract in minutes that you can edit, download, print and email. It does not require a notary or witnesses, only the signatures of the partners to make it enforceable. Simply input your information above to get started, or read on for more information.

Elements of a Partnership Agreement in Connecticut

Your Partnership Agreement contains information regarding the business (name, purpose, and duration), the details of the business partners, as well as the profit and loss distribution, among other important sections, including financial rights, partner authority, dispute resolution and dissolution of the partnership.

Financial Rights and Contributions

  • This section details the financial rights and responsibilities of the partners, including the following:

    • Individual capital contributions of the partners

    • Whether all partners are expected to contribute the same amount of cash and capital

    • If all the partners have equal rights/responsibilities or if their rights are based on the partner’s contributions

    • Allocation of the profits and losses

    • The percentage of the profits/capital that partners can draw, how and when

Partner Authority

It is frequently assumed that all the partners in a general partnership have equal rights/authority over the daily affairs of the business. However, this is often not the case. The Partnership Contract must outline the authority of the partners, while also stipulating who, when, why, and how a partner can enter into a legally binding agreement on behalf of the partnership or partners, and set limits to such authority as well.

In addition, the Agreement will name a Managing Partner and a Tax Matters Partner. The Managing Partner oversees the day-to-day operations of the partnership and is both executive and partner for the business. The Tax Matters Representative is the designated person who represents the partnership to the IRS and keeps partners informed of any tax issues.

  • Voting

    • Which decisions require voting, and which do not?

    • How will the partners vote? Do all partners get equal voting rights, and if not, how are the voting rights allocated – proportionate to the capital contributions or the profit shares?

    • Which matters require unanimous/majority vote?

Dispute Resolution—Mediation Clause

Disputes between partners could easily break the partnership, which is why a Mediation Clause is essential to lay out in advance the guidelines for resolving disputes among the partners. The Mediation Clause typically mandates the involvement of a third-party mediator or arbitrator to help resolve certain types of disputes among the partners. This clause also eliminates the time and costs of having to resolve such issues through the court system.

Withdrawal or Death of Partners

The Partnership Contract also outlines the steps to be taken in the event of withdrawal or death of a partner. For example, how the deceased’s share of the partnership will be divided, or can the remaining partners purchase the deceased stake in the business and will heirs of the deceased be allowed into the partnership, and the processes for such.

Dissolution of Partnership

The conditions for the dissolution of the partnership should be addressed such as upon completion of a specified project, or a specific end date (it can also be open ended), bankruptcy or death or a partner and the steps to be taken for dissolution of the partnership.

Our website will help you create a Partnership Agreement. We offer free on-line samples and templates of legal forms, including Partnership Agreements, that make the process that much faster. Simply fill in the form above to create your own Partnership Agreement.

Whether you’re doing business in Hartford, Stamford, Norwalk, New Haven, Danbury, Manchester, Middletown, or any other city in Connecticut, you can use our legal forms above.