A partnership agreement template for LLC (Limited Liability Company) is a crucial document that outlines the terms and conditions under which the partners operate their business. This agreement helps to prevent misunderstandings and ensures all partners are on the same page regarding their roles, responsibilities, and profit-sharing arrangements. Below are three diverse, practical examples of partnership agreement templates for LLCs that cater to different scenarios and partnership dynamics.
Context: This template is suitable for two or more individuals who want to start a business together and share equally in the management and profits.
**Partnership Agreement**
**This Partnership Agreement is made on [Date] by and between [Partner 1 Name] and [Partner 2 Name].**
**1. Formation**
The partners hereby form a Limited Liability Company under the name [LLC Name] in accordance with the laws of [State].
**2. Purpose**
The purpose of the LLC is to engage in [describe business activities].
**3. Capital Contributions**
Each partner agrees to contribute the following capital:
- Partner 1: $[Amount]
- Partner 2: $[Amount]
**4. Profit and Loss Distribution**
All profits and losses shall be distributed equally between the partners.
**5. Management**
Both partners shall have equal rights in the management of the LLC.
**6. Duration**
The partnership shall commence on the date of this agreement and shall continue until terminated by mutual consent or by law.
**7. Dissolution**
In the event of dissolution, the partners agree to liquidate the LLC’s assets and distribute them equally after settling all liabilities.
**Signatures:**
Partner 1: ___________________
Partner 2: ___________________
Notes: This template can be adjusted to include additional partners or specific clauses related to decision-making processes and dispute resolution.
Context: This template is ideal for partnerships where one partner (the silent partner) contributes capital but does not participate in day-to-day operations.
**Silent Partnership Agreement**
**This Silent Partnership Agreement is made on [Date] by and between [Active Partner Name] and [Silent Partner Name].**
**1. Formation**
The partners hereby form a Limited Liability Company under the name [LLC Name] in accordance with the laws of [State].
**2. Purpose**
The purpose of the LLC is to operate [describe business activities].
**3. Capital Contributions**
- Active Partner: $[Amount]
- Silent Partner: $[Amount]
**4. Profit Sharing**
The profits shall be shared as follows:
- Active Partner: [Percentage]%
- Silent Partner: [Percentage]%
**5. Management**
The Active Partner shall manage the LLC and make all day-to-day decisions. The Silent Partner shall have no authority to act on behalf of the LLC.
**6. Duration**
The partnership shall commence on the date of this agreement and shall continue until terminated by mutual consent or by law.
**7. Dissolution**
Upon dissolution, the assets shall be liquidated, and after settling liabilities, the remaining funds shall be distributed according to the profit-sharing ratio.
**Signatures:**
Active Partner: ___________________
Silent Partner: ___________________
Notes: This agreement can be customized to include clauses regarding the silent partner’s right to review financial statements and how often those reviews can occur.
Context: This template is suitable for partnerships where each partner has distinct roles and responsibilities within the LLC.
**Partnership Agreement with Specific Roles**
**This Partnership Agreement is made on [Date] by and between [Partner 1 Name], [Partner 2 Name], and [Partner 3 Name].**
**1. Formation**
The partners hereby form a Limited Liability Company under the name [LLC Name] in accordance with the laws of [State].
**2. Purpose**
The purpose of the LLC is to engage in [describe business activities].
**3. Roles and Responsibilities**
- Partner 1: [Role and responsibilities]
- Partner 2: [Role and responsibilities]
- Partner 3: [Role and responsibilities]
**4. Capital Contributions**
Each partner agrees to contribute the following capital:
- Partner 1: $[Amount]
- Partner 2: $[Amount]
- Partner 3: $[Amount]
**5. Profit and Loss Distribution**
Profits and losses shall be distributed as follows:
- Partner 1: [Percentage]%
- Partner 2: [Percentage]%
- Partner 3: [Percentage]%
**6. Management**
Decisions shall be made collectively, with each partner having voting rights proportional to their capital contribution.
**7. Duration**
The partnership shall commence on the date of this agreement and shall continue until terminated by mutual consent or by law.
**8. Dissolution**
In the event of dissolution, the partners will liquidate the LLC’s assets and distribute them according to the profit-sharing ratios after settling all liabilities.
**Signatures:**
Partner 1: ___________________
Partner 2: ___________________
Partner 3: ___________________
Notes: Consider including provisions for conflict resolution and a buy-sell agreement to protect the interests of all partners.