There are various forms of business entities working in the world. Some are large some are small. Depending on the nature of business and transactions, the business entity is developed. The three basic forms of business setups include the following:
- Sole Proprietorship
These are three types of business setups that can help organizations operate in a systematic way. For every type, there has to be some legal proof or document to make the structure more authentic and legally enforceable by law. For example, if there is a partnership firm it will have a partnership contract or agreement.
What is a partnership contract?
As the name implies a partnership contract or agreement is a legal deed or document that establishes a legal business relationship between partners of a firm. The partnership contract outlines the features as well as all the terms and conditions of this relationship between the partners. Some common features included in an official partnership contract template include the following:
- The names and details of all the partners
- The percentage of ownership in the organization
- The percentage of profit and loss of all the partners
- The delegation of authority and managing powers of all the partners
- Key duties and responsibilities of all partners
- Duration of the partnership with due date
- Rules of termination and exit from the partnership
- Rules for purchase and selling of company shares
- Any other important terms and condition
Format: MS Word