Docstoc

Silent Partnership Agreement

Document Sample
Silent Partnership Agreement Powered By Docstoc
					This is an agreement that forms a general partnership with the inclusion of one or more
silent partners. General partners are allowed to participate in the management
decisions of the partnership but will also be personally liable for the debts of the
partnership. Silent partners differ from general partners in that they do not participate in
the management decisions of the partnership and they are not personally liable for the
debts of the partnership. This agreement should be used by small businesses or other
entities that want to operate as a general partnership with at least one silent partner.
                                           Partnership Agreement•

                                                 [Silent Partnership]

On this ____ of ___________, 20____, the undersigned individuals, hereinafter referred to as the
“Partners,” entered into the following Partnership Agreement, hereinafter referred to as the
“Agreement.”

WHEREAS the Partners desire to form a partnership;

NOW, THEREFORE, in consideration of the mutual promises, covenants, and agreements set
forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by all parties, the Partners hereby mutually agree as follows:

                                                              I.

                                      Partnership Name, Place, and Business

The name of the Partnership shall be ______________________________ , (the “Partnership”)
and its purpose shall be to engage in and conduct business as set out specifically in Exhibit “A.”
The principal place of business of the Partnership shall be _____________________ and or any
other places as may be agreed upon by the Partners.

                                                              II.

                                                            Term

The Partnership shall begin on ____ of ___________, 20____, and shall continue thereafter until
lawfully dissolved.

                                                             III.

                                                    Capital Accounts

The Partners shall make initial capital contributions as set out in Exhibit “B.” No Partner's
contribution to the capital of the Partnership shall bear interest in his or her favor. The capital of
the Partnership and all other monies, documents of title, securities, and commercial papers shall
be deposited in the name of the Partnership in the bank or financial institution known as
_____________________ and located in _________________ in the State of
__________________.

                                                             IV.

                                                     Profit and Loss

Except as otherwise provided in this Agreement, the profits and losses of the Partnership and all
items of income, gain, loss, deduction, or credit shall be shared equally by the Partners. Profits


© Copyright 2013 Docstoc Inc. registered document proprietary, copy not                    2
and losses shall be computed in accordance with generally accepted accounting principles,
consistently applied.

                                                              V.

                                                 Banking and Records

The Partnership shall maintain two accounts, a capital account and an income account, for each
Partner. Each Partner's capital contribution, as set forth in Exhibit "B," shall be maintained in
such Partner's capital account. Except as provided in this Agreement, neither Partner shall
withdraw any part of his or her capital account. Each Partner's income shall be deposited in his
or her income account and such Partner's share of profit or loss shall be credited to, or debited
from, such account. In the event that the funds in a Partner's income account are insufficient to
satisfy such Partner's share of Partnership losses, the insufficiency shall be debited from that
Pa
				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:2354
posted:12/8/2011
language:English
pages:8
Description: This is an agreement that forms a general partnership with the inclusion of one or more silent partners. General partners are allowed to participate in the management decisions of the partnership but will also be personally liable for the debts of the partnership. Silent partners differ from general partners in that they do not participate in the management decisions of the partnership and they are not personally liable for the debts of the partnership. This agreement should be used by small businesses or other entities that want to operate as a general partnership with at least one silent partner.