Free 50/50 Partnership Agreement Templates For Business & General (Word / PDF)

A 50/50 partnership agreement template is used by the parties to create an agreement when they decide to go into business together. They use this tool to specify the terms and conditions of the partnership.

What is a 50/50 partnership agreement?

A 50/50 partnership agreement is a legal agreement between two individuals when they want to operate a business jointly. The costs, profits, risks, and liabilities will be shared among the partners equally. The agreement outlines the responsibilities of each partner in the business. Furthermore, it states who can make certain choices when circumstances arise like firing an employee, making a sale, and more.

How does a 50/50 partnership agreement work?

A 50/50 partnership agreement is mostly between two parties. The agreement clearly states the responsibilities of each partner and how they share the expenses and profits of the business. It isn’t compulsory to make every aspect of the partnership exactly equal although the agreement name includes 50/50.

Why should you use a 50/50 partnership agreement?

You should use a 50/50partnership agreement if you’re interested in starting a business with someone jointly. It would be easier to agree on terms if your partner is someone you know really well. In addition, future partners can avoid future misunderstandings by creating this document.

Here are some benefits of creating this agreement;

• It ensures that each partner has access to the business.
• Make a conflict resolution plan
• Set expectations for income
• Receive a minority share

Writing a 50/50 partnership agreement:

Both parties successfully share the responsibilities and profits of the business by creating clear and concise terms for partnership agreements. Consider the following steps to write your agreement properly;

Details of each partner

First, write the complete names and contact details of each partner.

State partnership details

Write the name of the business, the address where it is located, and the date when your partnership begins.

Investment details

Specify how much each partner will invest, in this case, it is 50/50.

Establish accounts

In the agreement, state clearly that each partner has separate capital and income accounts.

Settle profits and losses

Specify how profits and losses are shared. It is usually based on percentages of net profits and losses.

How partnership end

Include the procedure that you have to take to end the partnership. It might be ended by dissolution, withdrawal, etc.

The advantages and disadvantages of a 50/50 partnership agreement:

The advantages

• The risk, responsibility, and costs will be shared among parties equally.
• Both partners are supporting each other and setting up goals.
• There is more flexibility when you start a business with someone else.

The disadvantages

• You may face disputes over money and decisions.
• You have to communicate with each other on every matter.
• No one has a clear chain of command.

Sample Partnership Agreement Template

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In Tempus Partnership Agreement Example

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FAQ’s

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