Simple Partnership Agreement
A Simple Partnership Agreement is necessary as a foundation of your business partnership. A Simple Partnership Agreement ensures that your interests, and that of your partners, protected. Apart from reflecting clearly what business terms the partners agree on, a Partnership Agreement also provides guidance to mediate any disputes that may arise.
A Simple Partnership Agreement that covers off all the essentials. Clauses cover:
- Place of business
- Business Names
- Retirement of partners
- Equal shares
- Further capital
- Partnership Asset
- Bank account
- Outgoings and expenses
- Net profits
- Duties of partners
- Execution of documents
- Personal debts
- Financial records
- Annual and quarterly accounts
- Dissolution of partnership
- Death of partner
- Dispute resolution
- SCHEDULE contains
- Date of agreement
- Commencement of partnership
- Name of partnership
- Address of partnership business
- Description of partnership business
7 pages long.
For more general information on a Partnership Agreement please visit ATO/Business
A partnership is a group or association of people who carry on a business and distribute income or losses between themselves. For example, if you and a friend or family member decide to set up a business together, you might operate it as a partnership.
A partnership is relatively inexpensive to set up and operate. The partners share income, losses and control of the business.
A written partnership agreement is not essential for a partnership to exist, but is a good idea. A partnership agreement should outline how income or losses will be distributed to the partners and how the business will be controlled.
A partnership agreement can help prevent misunderstandings and disputes about what each partner brings to the partnership, and what they are entitled to receive from the income of the business. This is particularly important for tax purposes if the profit or losses are not distributed equally among partners.
The partners in a partnership are not employees, but the partnership might also employ other workers.
Partners are responsible for their own superannuation arrangements. However, the partnership is required to pay superannuation for its employees.