What is the difference between a General Partnership, an LP, and an LLP?

In a General Partnership all partners share unlimited liability. A Limited Partnership has general partners who manage and have unlimited liability plus limited partners liable only to their contribution. An LLP limits every partner's personal liability while keeping a partnership tax structure.

How should profits be split between partners?

Common methods are equal shares, shares proportional to capital contribution, or freely negotiated custom percentages. This tool calculates each automatically; custom percentages should always total 100%.

Does this generate a legally binding contract?

No. It produces a structured outline of the clauses a partnership agreement usually contains. You should have a qualified solicitor adapt and review it for your jurisdiction before anyone signs.

What happens if a partner wants to leave?

The outline includes a withdrawal clause giving notice periods and a buy-out right for remaining partners at fair value. The exact valuation method and notice window should be agreed and recorded in writing.

Is my data sent anywhere?

No. Everything runs locally in your browser. Partner names, contributions, and the generated text never leave your device.

Business Partnership Agreement Outline

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Set up a partnership on the right footing

A partnership agreement records how two or more people will run a business together: who put in what, how profits and losses are split, who can make which decisions, and what happens if someone wants out. Skipping it means falling back on default partnership law, which rarely matches what the partners actually intended. This tool assembles a clear outline you can take to a solicitor.

How it works

You choose a structure and enter each partner with a capital contribution. The tool then computes profit shares three ways:

Equal — every partner gets 100 / number of partners percent.
By contribution — each partner’s share equals their contribution / total contributions.
Custom — you type the percentages directly, and the tool warns if they don’t sum to 100%.

It then writes ten standard sections — parties, capital, profit and loss, management, roles, liability, drawings, dispute resolution, withdrawal, and dissolution — with the liability clause adapted to the structure you selected.

Tips and notes

Decide major-decision thresholds explicitly (for example, debt above a set amount or admitting a new partner) so a single partner cannot bind the others. Keep a Schedule A listing each partner’s role and time commitment, and revisit the agreement whenever contributions or responsibilities change. This is an outline, not legal advice — a solicitor should finalise the binding contract.