A business partnership agreement is an agreement between more than one party for the purpose of doing business together. The partnership agreement specifies the roles that every partner will have in the business, as well as what benefits they will get from the arrangement.

There are several types of partnership agreements available, including the general partnership and the limited partnership. There is a major difference between these two partnership types, mainly dealing with the roles each partner plays and the liabilities they assume.

In a general partnership, all partners share the same responsibilities of running the business, as well as they share all of the liabilities that come with operating the company. With a limited partnership, you have two different kinds of partners – general and limited. The general partner deals with the day-to-day operation of the business, where the limited partner is just an investor and has nothing to do with the actual operation of the company.

Because all partners in a general partnership, and general partners in a limited partnership assume all of the liability that comes with the business, it is generally a good idea to form an LLC, or limited liability company, to operate their part of the partnership under, thus giving them the personal liability protection they need.

The business partnership agreement, or partnership contract spells out who is involved in the partnership, what the purpose of the partnership is, as well as everything else legally required to define the partnership. It is vital to have a properly crafted partnership agreement so that there is never any question as to the responsibilities of each party involved. If you have an online formation service form your business partnership agreement, it is guaranteed to be accurate and proper.

Depending on what name you wish to do business under, DBA registration may be necessary. If you are operating the company under a fictitious, or assumed name, then you have to file a DBA to indicate this. If you are running the company under the name that you formed the partnership under, then this is not an issue.

Ensure that your business partnership is legally sound and covers anything necessary by using an online legal documentation service to create the necessary paperwork. This is the best way to get an affordable partnership agreement that is legally sound.