Free Ohio Partnership Agreement

Partnership Agreement in Ohio – The Benefits of the Written Agreement

If you are interested in creating a partnership business in the state of Ohio, then you need to know that just like the other states, you are not legally obligated to create a sign a partnership agreement then have it presented to the Secretary of State. While the agreement is legally required, it is one of the most important legally binding documents you will prepare and sign. We recommend creating a complete partnership agreement in Ohio for the proper management of the partnership business.

Using our free Ohio partnership agreement form templates, you will receive the best guidance on how to prepare the partnership agreement that works best for your business. Remember that the partnership agreement, also called the partnership contract, general partnership agreement, or the business partnership agreement, represents the legally binding instrument designed to guide your partnership and the partners. This agreement stipulates the rights of each partner and the partnership, and it also outlines the obligations and the roles of each partner, while defining the relationship between the partners and between the partners and the partnership.

Our free legal partnership agreement template is editable, and it’s created in a way that allows you to supply the prescribed data into the created fields easily. At the end of the day, the data provided in the agreement offers proof, and it also provides guidance on how you will be handling your business’ internal affairs.

Below are some of the main benefits of creating and using a written partnership agreement

    • 1. Lowered impact of internal (external) conflicts

      If you need a single reason why you must have all the parties to your partnership, sign a partnership agreement, this is it. The prevention of the impact of conflict/ disputes is the primary reason why you must have a written partnership contract. This contract offers evidence of something that was agreed on in the past or something that happened in the past but might have been forgotten. In the event of an internal or even an external dispute, the written/ signed agreement will serve as all the proof you need.

      Among others, here are the things that the agreement will clarify:

        • The intention of the partners to form the partnership business

        • The term/ duration of the partnership and the circumstances (agreed upon previously) under which the partnership could be dissolved

        • The parties’ joint ownership of the assets and the liabilities of the partnership

        • How the profits will be split

        • The agreed methods of conflict resolution

    • 2. The Agreement Prevents Unwanted/ Unnecessary Dissolution of the partnership business

      The other big reason why we recommend business partnership contracts for all partnerships has to do with the fact that the absence of the contract would result in the unwanted or the unnecessary dissolution of a partnership business.

      To guide your partnership, here are the main reasons why your partnership may be dissolved – these are the reasons that you want to be included in your partnership contract. They include:

        • The death of a partner

        • Insolvency or the bankruptcy of a partner

        • Expiration of the term of the agreement

        • Issuance of a written notice by one partner to the other partners highlighting their intention to have the partnership business dissolved.

        • When at least one partner is no longer capable of owning the business, legally

        • Circumstances where it’s unlawful for the partners to carry out the partnership business

        • If a partner makes a court application to have the partnership dissolved

      Beware, however, that the last three points above would result in the dissolution of the partnership, whether the agreement is in place or not. However, death, insolvency, a notice of dissolution, or where a partner can no longer own the partnership business, are reasons that would result in the automatic dissolution of the partnership business.

    • 3. The Agreement allows for the reconstitution of the partnership business

      The other reason why you must create a partnership contract is that you may find yourselves at a place where one of your major clients or even a business associate intends to leave the partnership, leaving the continuing partners with authority to take over the liabilities and the assets of the business, for the continuity of the business. For this to happen, the agreement must have precise provisions for the reconstitution of the partnership business.

      For example, for reconstitution, here are some of the conditions that must be met:

        • At least one continuing partner should be present

        • An implied or express continuity clause should be incorporated in the agreement

        • A huge chunk of the partnership’s assets should remain with the continuing partnership

        • Name, Nature, and the client/ customer base of the business must remain unchanged

      Substantial means that more than 50% of each element.

Financial matters

Finally, you also need the partnership contract because it ensures that the terms or steps for the division of profits are specified, compensation, salaries, and the capital draws will also be discussed in the contract. There is also the clarification of ownership shares and how to handle and manage property.

To get your partnership business on the right track, download our free partnership agreement form accessible in Cincinnati, Columbus, Cleveland, Toledo, Akron, Dayton, and all other cities of Ohio.