Free simple general partnership agreement is what most people need when they are just starting their partnership business. This is a free form of partnership agreement that can be prepared in about 15 minutes. All you have to do is to search for these. These are not the same as the ones you have to pay for. You will find out how to prepare one online and get it done.
The first section of a general partnership document should be the name of your partner. Include the capital, date of formation, names of partners, objectives of the company and other information you want to include. This is where all the rules of how your partnership will work will be listed out. You will see at this point the name of the general partner should be included.
The next part should be the name of the partnership itself. It should be the name of the company you have chosen. Include the partnership's contact details if there are any, names of directors or members, and the date of its formation.
The next section is the section on property. In this section you have to specify how the partnership money will be used. You can use this section to specify what percentage of the partnership's capital is going to be used for the capital, for the operating expenses and for the debt. If there are other partners, then specify their share too.
The next section will be on the ownership of the partnership's property. This section should detail which partner owns what property. You may choose to add or delete from this section if you wish. But be sure you specify the exact property that your partnership is entitled to. This is needed so that the document is legally valid.
The next section of a free simple general partnership agreement is the tax information. You have to include information on the partnership's income_tax standing. The partnership will get its own tax number, either Partnership Tax Permanent or Partnership Tax Non_Resident. You may also include details on the Partners' liability to pay taxes, capital gains tax, and dividends. There are a lot of different ways you can write about these matters, so be sure you cover all the important issues here.
Then there is the sharing of profits. In this section, you describe how the partners get the ownership of the property. The partnership can divide the profits equally between the partners or it can be divided the profits between the partners in certain specific proportions. Be as detailed as possible with this section, so that all your property rights will be protected.
That's it! Your free simple general partnership agreement is complete. It describes everything from the basics to the most complex points. There are a lot of great templates online for this kind of document, so you can start writing right away. Just make sure you understand what you're doing, though.
When you and your other partners draw up your partnership agreement, be sure and point out to your partners the effects of any joint ownership or investment opportunities they may have. That way, should one partner die, their estate will have enough money to pay off all your creditors, including yours. Also, mention exactly who is responsible for paying what bills, such as rent and mortgage, to your other partners. Finally, put in the information about how and when you plan on splitting up the partnership.
Another free simple general partnership agreement template you can use is one that describes the type of shares you each own. For instance, if you and your other partners both have 50% shares of a property, you can describe this in your agreement. Each share has an equal value. You can state how many times each partner has a right to vote, how much each one is entitled to receive and such. This section alone could take up quite a bit of time, so it's probably best to choose one that you can modify to meet your needs rather than start from scratch.
The last free simple general partnership agreement template you can use is one that describes the income and expenses of the partnership. Again, each partner will have an equal right to receive a portion of the partners' income and expenses. You can include information regarding retirement benefits, retirement accounts, stock options, and mutual funds. Use your discretion here; this section is not required to be included unless you are planning to use the partnership as an asset protection strategy.
There are many more ways to customize your free simple general partnership agreement. For example, if you or one of your partners has children from a previous marriage, or are expecting a child in the future, you might want to add a clause that explicitly states that the partnership can use child care while the partners are working. You could also add stipulations about who is responsible for paying debts (either yourself or each partner) in the event of the death of one or both partners. Your final choice may include whether the partners will each contribute a specific amount of money to the partnership's accounts. Be sure to include all of the options you feel are necessary to make your document strong and effective.