Sample Oklahoma Partnership Agreement
Does Your Partnership Agreement in Oklahoma Answer All Pertinent Partnership-Related Questions?
The state of Oklahoma may not require partnership businesses to have partnership agreements, and you will not be fined for preparing one, but making the cautious step to prepare a legal partnership agreement could be the smartest legal move you make for the business and the partners’ sake. For starters, this legally binding document takes precedence over any court action or moves that could delay or stop business operations because it lays out the written intentions of the partners. These written intentions would then be used to guide the business and the partners in the event of a dispute that threatens the operations of the business. And since the agreement must be signed by all the partners to the partnership, it guides on important matters, for example, the ones that affect succession, exit from the partnership, and how the profits will be split between the partners.
Considering the weight that this agreement carries, which questions must the document address and answer unequivocally?
What is a partnership agreement?
At the beginning of this legally binding agreement, the name of the partnership and the partners will be specified. Ever wondered why this is the case?
As obvious as it may seem, the names must be specified because a partnership agreement is a legally binding legal instrument that specifies/ outlines the roles, relationships, rights, and the obligations of the partners, often to each other and to the partnership business. This document is also called a partnership contract, a business partnership agreement, articles of partnership, or a general partnership agreement. These names are often used interchangeably.
In the next sections, we’ll take a dive into the important sections that must be included in the partnership and the guiding questions that will ensure that everything about the agreements is captured.
But first, it’s worth noting that you don’t have to find a lawyer to prepare a legal partnership agreement in Oklahoma. To get started, you only need a free Oklahoma partnership agreement form. Our forms have all the important sections already outlined, but since this legal partnership agreement sample is editable, you can add different things to the document to ensure that it matches the needs and the vision of your business. Once you have everything you need in the contract, all the partners will have to sign the agreement against their names. The signatures are necessary to make the agreement enforceable in the courts. Notarization isn’t necessary.
Now that you have an idea of how to start the process let’s look at some of the important questions to be answered by your partnership agreement in Oklahoma.
What’s each partner’s financial contribution?
It’s easy to assume that you will all be on the same page on all matters regarding the partnership, but we are only human, and our memories are fluid and, in other cases, quite unreliable. So, to ensure that you have a reference point when it comes to financial matters, specifically, the capital contributions made by each partner, an enforceable partnership agreement in Oklahoma should have a section specifying the partners’ contributions, as well as the agreed terms for the valuation of different kinds of contributions, for example, sweat equity. Besides the capital contributions, the partnership contract also needs to specify the part of the partnership profit that constitutes the income, and also, the capital/income draws from the profits generated. Tax matters and setup of bank accounts should also be specified.
How is work divided among the partners?
In addition to naming the managing partner and specifying their roles and responsibilities, the agreement should also outline the roles, duties, or obligations of the other partners. Specifying the roles and responsibilities of each partner ensures that the partners are not stepping on each other’s toes, therefore, ensuring effortless workflow.
How is property defined in the partnership, and how will they be used?
In addition to physical property like equipment, vehicles, building, etc., the agreement should also specify and classify other types of property, for example, the computer applications, client lists, goodwill, and process designs, as well as intellectual property and other types of property brought into the partnership business. The valuation of these items also needs to be specified. In addition to the specification of the asset classes, the use of the property needs to be specified too.
How will disputes be resolved?
Disagreements will arise between the partners and the partnership and, in other cases, among the partners. Unfortunately, these disputes (seemingly small) could disrupt the operations of the partnership, or worse, threaten the survival of the business. However, you could limit such threats by instituting specific rules. For example, a mediation clause included in the partnership laying out the steps to be taken in the event of a dispute would be an excellent start.
What happens if a partner is incapacitated or if they die?
Death is inevitable, and the partnership business may not work for everyone in the long run. So, to ensure that the exit strategies are specified, your partnership agreement must have a clause specifying different exit strategies. Matters regarding the sale of the business will be covered here too.
To get started with your partnership contract in Oklahoma City, Norman, Edmond , Tulsa, Moore, Durant, Muskogee, Bartlesville, Ardmore, or any other city of Oklahoma, download our free partnership agreement form here, today.
OK Partnership Agreement
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