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A partnership agreement is a contract for two or more people or entities used to form a business partnership. The agreement sets forth the terms and conditions and rules regarding governance of the partnership. The agreement also describes the kinds of contributions each partner will make and set forth whether it will be an equal partnership or if one partner will make a larger contribution of money, or labor than the other partner(s).
This agreement provides for partner flexibility upon the withdrawal, death or other incapacity of a partner and allows for the remaining partners to either accept such partner's successor in interest as a partner or buy-out such partner's interest, as may be agreed by the partners. This provision prevents the dissolution of the partnership outright upon such event and gives the partners flexibility in dealing with such unforeseen events.
This is a Bill of Sale used to transfer assets to a partnership in exchange for a partnership interest. Partners often transfer assets in lieu of, or in addition to, cash contributions, in return for an interest in the partnership. However, please note that appropriate title transfer documents may also need to be prepared and submitted to the appropriate governmental entity if title to any of the property is maintained on record with that entity (for instance, DMV records of vehicle ownership, etc.). Also, consult an account regarding the tax implications of transferring assets to a partnership in exchange for a partnership interest, whether such transfer qualifies as a tax free transfer or otherwise.
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