Is a written partnership agreement necessary for all partnerships?
No. State law does not require partners to enter into a written partnership agreement, but it is smart to do so. If you don’t enter into a partnership agreement, you run the risk that your partnership will be governed by the default rules provided for by state partnership laws and which may govern your partnership in ways you and your partners had not intended. Creating a written partnership agreement will also give you and your partners a chance to discuss your expectations of each other, define how each of you will participate in the business and help you work out any issues before they become major problems. You don’t have to spend a lot of money on lawyer’s fees to create a valid agreement. You and your partners can easily put together a simple, clear agreement. For more information, please read the free legal tutorial entitled Small Business Legal Structure and check out the Forms Store for sample partnership agreements.
