Free Texas Partnership Agreement

IN CONSIDERATION OF and as a condition of the Partners entering into this Agreement and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged, the parties to this Agreement agree as follows:

Place of Business

Withdrawal of Capital

Interest on Capital

Profit and Loss

Compensation for Services Rendered

Books of Account

1. a statement of all information as will be necessary for the preparation of each Partner's income or other tax returns;
   
2. a copy of the Partnership's federal income tax returns for that fiscal year;
   
3. a breakdown of the profit and loss attributable to each Partner; and
   
4. any additional information that the Partners may require.
   

Banking and Partnership Funds

Contract Binding Authority

Admitting a New Partner

Voluntary Withdrawal of a Partner

Involuntary Withdrawal of a Partner

Dissociation of a Partner

Distribution of Property on Dissolution of Partnership

1. in satisfaction of liabilities to creditors except Partnership obligations to current Partners;
   
2. in satisfaction of Partnership debt obligations to current Partners; and then
   
3. to the Partners according to the Dissolution Distribution described above.
   

Valuation of Interest

Title to Partnership Property

Duty of Loyalty

Duty of Accountability for Private Profits

Duty to Devote Time

1. "Additional Capital Contributions" means Capital Contributions, other than Initial Capital Contributions, made by Partners to the Partnership.
   
2. "Capital Contribution" means the total amount of cash or Property contributed to the Partnership by any one Partner.
   
3. "Dissociated Partner" means any Partner who is removed from the Partnership through a voluntary or involuntary withdrawal as provided in this Agreement.
   
4. "Expulsion of a Partner" can occur on application by the Partnership or another Partner, where it has been determined that the Partner:
   
   1. Has engaged in wrongful conduct that adversely and materially affected the Partnership's business;
      
   2. Has willfully or persistently committed a material breach of this Agreement or of a duty owed to the Partnership or to the other Partners; or
      
   3. Has engaged in conduct relating to the Partnership's business that makes it not reasonably practicable to carry on the business with the Partner.
      

   IN WITNESS WHEREOF the Partners have duly affixed their signatures under hand and seal on this 3rd day of _____________ .

   SIGNED, SEALED, AND DELIVERED

   in the presence of:

   Witness Name: ____________________________

   Witness Name: ____________________________

   Clauses to Strengthen Your Partnership Agreement in Texas

   A partnership agreement refers to a fundamental contractual document created between two or more parties getting into business with the intention of making a profit. The partners share in the profits and the losses of the business, and these partners could also be personally liable for the liabilities, and the obligations of the partnership (general partnership) or their personal liability could be limited (limited liability partnership). It, therefore, means that before you prepare your business’ partnership agreement, you will be required to agree on the business structure that would work well for you, or rather, one that would meet your needs in the best way.

   Remember that the agreement is the critical and the foundational document that ensures the success of a newly set up business. Among other reasons, this document ensures that proper and clear communication and the definition of the roles and responsibilities of the partner. This document comes in handy in the documentation of your business’ contingency plan for when things go sideways in the future while ensuring the efficient running of the day to day operations of the business. However, this document cannot do all that on its own; you need to create an all-inclusive partnership contract that’s specific to the needs and the goals of your partnership business.

   How to create a partnership agreement

   Note that the partnership agreement is also called a partnership contract, a general partnership agreement or a business partnership agreement.

   To enjoy the immense benefits brought about by the partnership agreement in Texas, the first thing you’d have to do is to download our free Texas partnership agreement form. While you have the option of hiring legal counsel, the lawyer may charge you more than you can afford. The legal partnership agreement sample form is an excellent place for you to start since it’s not only free, it’s also editable, and it has leading clauses to guide you as you prepare a legally binding document that represents your business’ needs. The clauses in the partnership agreement are designed to provide guidance in the daily operations of the business, and it also sweeps in later when there are contentious issues that call for your immediate attention. Therefore, when drafting the partnership contract, you need to make sure that all the critical factors of your business and its leadership/ organizational structure are covered.

   So, what do you need to include in your partnership agreement?

   Essential Clauses to Strengthen Your Business Partnership Contract

   In addition to the legal business name of the partnership business, a description of the purpose of the partnership business, the partners’ information like their names/ addresses, and the term of the partnership, there are other clauses that you must incorporate in your business partnership contract. These clauses include:

   Capital Contributions

   Decision Making

   Dispute Resolution

   Non-Compete

   The partnership contract is a document that protects the interests of your business. To create one today in Austin, San Antonio, Houston, El Paso, Dallas, Amarillo, or any other city in Texas, download our free partnership agreement here to get started.

   Sample Texas Partnership Agreement

   

   Sample Texas Partnership Agreement

   Sample Texas Partnership Agreement

   

   TX Partnership Agreement

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