At the initial formation of a business partnership, the Partnership Agreement contains mutually approved rules and guidelines of the partnership.
Not unlike a constitutional amendment, or any other amendments, if you have to make any changes to the original agreement, you would use a Partnership Amendment to accomplish this. Once again, per the constitutional amendment example, you are allowed to have multiple amendments, so long as you can get the other partners to go along.
Every time you add an amendment to the Partnership Agreement, the amendment becomes part of the agreement.
An amendment could be as simple as a decision to use another banking institution, agreed on by all partners. Similarly, if a partner alters their contributions, you may need to add an amendment to the original agreement.
Depending on your state, a Partnership Amendment may also be known as:
Partnership Agreement Amendment
Business Partnership Amendment
Partnership Addendum
Amendment of Partnership Contract
Amendment to Articles of Partnership
As said, you may have to make changes to what’s agreed upon in your business partnership. In that event, you will use a Partnership Amendment form. Typical scenarios include changes to the number of partners (leaving or joining) or changes to the distribution of profits or losses.
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If changes are afoot in your partnership or anticipate this to be the case, it would benefit you to have a template to whip up Partnership Amendments.
Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.
To create your document, please provide:
Partners: The name and details of all current partners in the partnership.
Business details: The name, address, and other elements of the business partnership.
Effective date: The date when the amendment becomes valid.
Revision details: Specify all the changes made to the original agreement.
Previous revisions: The number of times the partnership agreement has been amended in the past.
Signatures: All of the partners are to sign the Partnership Amendment.
Amendment: A change to something previously agreed upon
Addendum: An addition to an existing agreement or contract
SEC: The US Securities and Exchange Commission, which most people know as the regulatory body for the stock exchanges in the United States
Revision: An official change to a document itself, rather than having an amendment attached
Waiver: An intent to abandon a specific right or claim
Dissolution: Doing away with an agreement, such as a partnership agreement
Governing Law: The state’s law to apply
Severability: The quality of a document, such as an agreement or a lawmakers’ bill, being valid even when some of the parts or provisions are struck out (of course, accurate without the offending parts or provisions)
All current partners need to sign the Partnership Amendment. The document doesn’t require notarization. However, you can still use a notary public to add a layer of security if you deem it appropriate.
The executed Partnership Amendment is to be filed with the original Partnership Agreement and kept with other essential documents in the partnership.
One of the biggest advantages is that it is a business structure that is easy to set up. Getting a startup off the ground is less complicated with a partnership. Another advantage is that the workload can be evenly distributed, if so desired, and the rewards can be too. Becoming a partner can be a motivation for people to want to stay with a company. Law firms are commonly partnerships and you must have heard of this or that attorney proudly announces to the world that he or she has been “made a partner.”
It can become more complicated with the number of partners. Also, unlike the corporation business structure that shields the owners from individual liability, the partnership business structure does not. As such, the partners can be liable for anything that a partnership inflicts on others, whether it is real or alleged, and this could include claims of fraud and personal injury.
Without a Partnership Amendment, nothing about the changes is official. The original Partnership Agreement still holds. All partners may agree to the changes now but any one of them could change their mind later and cause friction in the partnership.
When one of the partners decides to leave the partnership for whatever reason, he or she will need a notice of partnership withdrawal. This is otherwise known as a voluntary partnership withdrawal. Conversely, the involuntary notice of partnership withdrawal is used if the partners come together and decide to force one partner out of the partnership. This type of partnership withdrawal is usually posted in local newspapers or filed with the state.
This is a declaration of intent that the partners would like to dissolve the partnership. The agreement would detail how the affairs of the partnership are to be conducted leading to the eventual dissolution. It can also happen that after one or more partners leave a partnership, the partnership becomes unviable and the remaining partners would dissolve the partnership and figure out something else.
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