Why do I need a partnership agreement?

A description of the benefits of creating a Partnership agreement and the effects on your business of not having a documented agreement

While there is no legal requirement for a partnership to put a partnership agreement in place, the majority do tend to use them to define specific details of their partnership, such as:

  • Varying degrees of capital contributed
  • Profit (and loss) sharing
  • How the business will be run
  • The amount partners can withdraw from the business
  • The procedure should a partner become ill, die or want to leave the partnership for any other reason
  • The procedure for introducing new partners

Start your partnership agreement now

A partnership can be formed by two or more people agreeing to form a partnership. However, without a partnership agreement, the business will be governed by the Partnership Act of 1890, which may produce unforeseen or undesirable results, particularly if there is a future disagreement between partners.

The information on this page applies to England and Wales only.

Related products

Copyright © 2024 Epoq Group Ltd. All trademarks acknowledged, all rights reserved

This website is operated by Epoq Legal Ltd, registered in England and Wales, company number 3707955, whose registered office is at 2 Imperial Place, Maxwell Road, Borehamwood, Hertfordshire, WD6 1JN. Epoq Legal Ltd is authorised and regulated by the Solicitors Regulation Authority (SRA number 645296).

Our use of cookies

We use necessary cookies to make our site work. We would also like to set some optional cookies. We won't set these optional cookies unless you enable them. Please choose whether this site may use optional cookies by selecting 'On' or 'Off' for each category below. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Cookie notice.

Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Functionality cookies

We'd like to set cookies to provide you with a better customer experience. For more information on these cookies, please see our cookie notice.