What does this agreement cover?

Creating a partnership agreement enables the partners to address and resolve important issues about their partnership, such as how profits and losses will be allocated, how the business's day-to-day operations will be managed, and what happens when a partner dies or leaves the partnership. Without a written agreement, your partnership will be subject to default state laws -- one-size-fits-all rules that may not apply to your situation or reflect the partnership interests. That's why it's always best to put the agreement in writing. Everyone knows up front what their rights and responsibilities are (particularly when it comes to money), which reduces the chances of a dispute later. And if a dispute does erupt, it will be easier to solve if you have a written agreement as a guide.

This agreement covers the basics. Depending on your business and goals, you may need to add to, alter, or revise clauses to fit your particular situation. If you do make changes or additions, make sure they clearly express what all the partners have agreed to and don't contradict anything else in the agreement.

How many members can this agreement accommodate?

This agreement can accommodate partnerships that consist of up to six members.