Free Arizona 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: ____________________________

   Arizona Partnership Agreement

   A Partnership Agreement is also known as:

   • • General Partnership Agreement
     • Business Partnership Agreement
     • Partnership Contract

     When entering into a business partnership with friends, family, colleagues or none of those, creating a Partnership Agreement that details the rights and responsibilities of the partners and how the business will be run, is one of the most important steps you can take to help make your partnership a success. Unlike handshakes and word-of-mouth agreements, the Business Partnership Agreement is legally binding and enforceable.

     Free Arizona Partnership Agreement Ready in Minutes

     We make it quick and easy to create a Partnership Agreement. Use our free Arizona Partnership Agreement template to create, download, print and email your Agreement in minutes. Simply fill in the information above to get started, or read on for more information.

     What Information is Included in a Partnership Agreement?

     While there are different types of partnerships (limited and general partnerships), the information contained here applies to a General Partnership Agreement, which includes the following;

     • • Name and the purpose of the partnership
       • Names and contact information for partners
       • Start date and the duration the partnership is expected to last
       • Where you will be doing business
       • Individual partner contributions
       • How the profits and the losses of the partnership will be distributed
       • If the partnership will permit new partners in the future
       • Details of financial reporting, as well as the day-to-day management matters

       A Partnership Agreement also includes other clauses that are typically the biggest causes of contention.

       Management and Voting

       Will one of the partners take on the role of Managing Partner or will the partnership hire an independent Manager for the day-to-day operations of the business? What issues will require the partners to vote and what vote tally is required? Voting powers of the partners can be assigned in three ways:

       • • Voting powers proportional to the partners’ capital contributions
         • Voting powers based on the profit distribution
         • Equal voting powers to all partners (one vote per partner)

         Tax Elections

         For tax purposes, the IRS treats all partnerships as taxable entities, with auditing done at the partnership level rather than having individual audits of each partner. The Partnership Contract should address specific tax elections and designate the partner responsible for handling the tax matters on behalf of the partnership, known as the Tax Matters Partner.

         Partnership Withdrawal/Buyout

         The Partnership Agreement will specify the conditions to be met by a partner wishing to withdraw from the partnership, including the following:

         • • Whether or not the remaining partner(s) can buy out the rights of the departing partner
           • Will the partnership consent to new partners in the future? What are the conditions to be met by the new partners?
           • Steps to be taken in the event of the death of a partner

           Partnership Dissolution

           The Partnership Agreement also outlines the circumstances under which the partnership would dissolve, such as by agreement among the partners, upon completion of a project or if the partnership’s objective is met, death of a partner, or bankruptcy of partnership or partner.

           Dispute Resolution

           What are the steps to be taken in the event of a conflict between partners? The Partnership Agreement may have a mediation clause that compels the partners to a third-party professional mediator to review and resolve the conflict.

           Our site helps you create an Arizona Partnership Agreement. We offer free on-line templates and Partnership Agreement samples that make it easy. Simply fill in the information above to get started.

           Whether you live in in Tucson, Scottsdale, Mesa, Phoenix, Tempe, Peoria, Kingman, Grand Canyon Village, Prescott or any other city in Arizona, you can use our free legal forms.

           Sample Arizona Partnership Agreement