Partnership Agreement Template — Free PDF Templates
A free business partnership agreement template covering capital contributions, profit splits, decision-making authority, partner exits, deadlock resolution, and dissolution. A working starting point for two or more people going into business together.
People write partnership agreements while they trust each other, so the document itself gets treated as a formality. Resist that. The clauses that matter are exactly the ones that feel unnecessary on day one: what happens when a partner wants out, how a deadlock between 50/50 owners gets broken, whether a partner can be removed for not pulling their weight, and how the business is valued when someone leaves or dies. This template covers those alongside the basics of capital contributions, profit and loss allocation, decision-making thresholds (which choices need unanimity versus a majority), partner salaries or draws, and restrictions on partners competing with the business or binding it to contracts unilaterally. Work through every section together before signing; the arguments the document provokes now are far cheaper than the same arguments later with money on the table.
FAQ
1. Do profit splits have to match capital contributions?
No. Partners often weight splits to reflect time, expertise, or the client base someone brings, not just cash invested. What matters is writing the allocation down along with whether it can be revisited, because a split that felt fair at signing can feel very unfair once one partner is doing most of the work.
2. How should a 50/50 partnership handle deadlock?
Pick a mechanism in advance. Options include giving a named partner the final say in a defined domain, escalating to a mutually agreed third party, or a buy-sell provision where one partner names a price and the other chooses to buy or sell at it. Any of these beats the default, which is paralysis.
3. What should the exit clause cover?
Notice requirements, how the departing partner's share is valued (an agreed formula avoids duelling valuations), payment terms for the buyout so the business isn't drained overnight, and what obligations survive exit, such as confidentiality and non-solicitation of clients or staff.
4. Is a signed template legally sufficient for a partnership?
Treat this template as a strong starting draft, not the final word. Partnership rules, tax treatment, and registration requirements vary by jurisdiction, and the cost of a lawyer reviewing your finished draft is trivial next to the cost of a defective agreement. Bring them a completed document and the review is faster too.
5. How do all the partners sign?
Upload your final draft to Papersign and add signature fields for every partner. Each person signs from their own device wherever they are, the completed agreement is distributed to everyone automatically, and you have a dated record of who signed when.
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