As a small business owner, you likely understand the importance of having clear and concise contracts with all of your partners and vendors. One such contract that can be especially crucial for small businesses is a partnership agreement. This agreement serves as a roadmap for how partners will work together, what each partner`s responsibilities are, and what will happen in the event of a dispute or dissolution of the partnership.

Below, we`ll outline some key things you should consider including in your small business partnership agreement:

1. Partnership structure: Your agreement should clearly outline the structure of your partnership. Will it be a general partnership, limited partnership, or limited liability partnership (LLP)? This will determine each partner`s level of liability and responsibility for the business.

2. Contributions: The agreement should also detail each partner`s contributions to the business, whether it be financial or in terms of time and expertise. This helps ensure that each partner has a clear understanding of what is expected of them.

3. Profit and loss sharing: It`s important to establish how profits and losses will be shared among partners. This can be based on the percentage of ownership each partner has, or it can be split equally among all partners.

4. Decision-making: The agreement should outline how decisions will be made within the partnership. Will it be by unanimous vote, or will there be a certain percentage of votes required for a decision to be made?

5. Dispute resolution: It`s important to have a plan in place for resolving disputes between partners. This can include mediation or arbitration, or it can outline a process for dissolving the partnership if necessary.

6. Exit strategy: Finally, the partnership agreement should include an exit strategy for each partner. This can include options for buying out a partner`s share of the business, or it can outline a process for dissolving the partnership if one partner decides to leave.

Overall, a well-crafted partnership agreement can help ensure that your small business runs smoothly and that all partners are on the same page. It`s important to work with an experienced attorney to draft your agreement and ensure that it covers all of the necessary details. Additionally, make sure that all partners fully understand and agree to the terms of the agreement before signing. With the right partnership agreement in place, your small business can thrive and grow for years to come.