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Limited Liability Partnership Agreement - DOC
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					      Limited Liability Partnership Agreement of (Name of Partnership), L.L.P.

        This Limited Liability Partnership Agreement is made and entered into as of the (date),
by and among John Doe, hereinafter called Doe, Mary Smith, hereinafter called Smith, and
John Roe, hereinafter called Roe, each of whom is referred to herein as a Partner. The
Partners hereby form a limited liability partnership, hereinafter called the Partnership under the
laws of the State of (Name of State) for the purpose of (describe business of Partnership) and
agree to operate the Partnership pursuant to the terms and provisions hereinafter set forth.

I.     Definitions.
       A.      Capital Account means the Capital Account maintained for each Partner
       pursuant to Section VII(C).

       B.      Capital Contribution means, with respect to any Partner, the amount of money
       and the initial Gross Asset Value of any property (other than money) contributed to the
       Partnership with respect to the Partnership interest held by such Partner. For purposes
       of this Paragraph, money contributed to the Partnership does not include increases in
       any Partner's share of Partnership liabilities pursuant to Code § 752(a).

       C.      Code means the Internal Revenue Code of 1986, as amended from time to time.

       D.       Depreciation means, for each fiscal year or other period, an amount equal to the
       depreciation, amortization or other cost recovery deduction allowable with respect to an
       asset for such year or other period, except that if the Gross Asset Value of an asset
       differs from its adjusted basis for federal income tax purposes at the beginning of such
       year of other period, Depreciation shall be an amount which bears the same ratio to
       such beginning Gross Asset Value as the federal income tax depreciation, amortization
       or other cost recovery deduction for such year or other period bears to such beginning
       adjusted tax basis; provided, however, that if the federal income tax depreciation,
       amortization or other cost recovery deductions for such year is zero, Depreciation shall
       be determined with reference to such beginning Gross Asset Value using any
       reasonable method selected by a Majority of the Partners.

       E.      Gross Asset Value means, with respect to any asset, the asset's adjusted basis
       for federal income tax purposes, except as follows:

               1.     The initial Gross Asset Value of any asset contributed by a Partner to the
               Partnership shall be the gross fair market value of such asset, as determined by
               the contributing Partner and the other General Partners;

               2.      The Gross Asset Values of all Partnership assets shall be adjusted to
               equal their respective gross fair market values, as determined by the Partners, as
               of the following times: (i) the distribution by the Partnership to a Partner of more
               than a de minimis amount of Partnership Property as consideration for an interest
               in the Partnership if the Partners shall reasonably determine that such
               adjustment is necessary or appropriate to reflect the relative economic interests
               of the Partners in the Partnership; and (ii) the liquidation of the Partnership within
               the meaning of Treas. Regs. § 1.704-1(b)(2)(ii)(g);

               3.      The Gross Asset Value of any Partnership asset distributed to any
               Partner shall be the gross fair market value of such asset on the date of
               distribution as determined by the distributee Partner and the other Partners; and
       4.      The Gross Asset Values of Partnership assets shall be increased (or
       decreased) to reflect any adjustments to the adjusted basis of such assets
       pursuant to Code § 734(b) or Code § 743(b), but only to the extent that such
       adjustments are taken into account in determining Capital Accounts; provided,
       however, that Gross Asset Values shall not be adjusted pursuant to this
       paragraph to the extent the Partners determine that an adjustment pursuant to
       the foregoing Paragraph is necessary or appropriate in connection with a
       transaction that would otherwise result in an adjustment pursuant to this
       paragraph. The determination of the Gross Asset Value of an asset shall take
       into account the premium or discount, if any, of the liabilities associated with such
       asset. If the Gross Asset Value of an asset has been determined or adjusted
       pursuant to the foregoing Subparagraphs B or D, such Gross Asset Value shall
       thereafter be adjusted by the Depreciation taken into account with respect to
       such asset for purposes of computing Profits and Losses.

F.     Majority of the Partners means more than 50% of the Partners.

G.      Net Cash Flow means for each fiscal year or other period, all revenues (which
do not include refundable deposits or unearned rent) of the Partnership received in cash
during such fiscal period, including Capital Contributions and the net cash proceeds from
a sale or other disposition of a Partnership asset, less the sum of (i) operating expenses
of the Partnership paid in cash during such period, (ii) the aggregate of all cash
payments during such period with respect to proper liabilities of the Partnership and
payments of interest and principal on indebtedness of the Partnership, (iii) amounts paid
on account of any loans made to the Partnership by any Partner (interest on which shall
be at the rate of one (1) percentage point over the then prevailing prime rate of (Name
and Location of Bank), as it varies from time to time, but in no event to exceed the
maximum rate permitted by law); and (iv) such reserves, if any, as a Majority of the
Partners shall agree upon.

H.       Nonrecourse Deductions has the meaning set forth in § 1.704-2(b)(1) of the
Treas.Regs. The amount of Nonrecourse Deductions for a Partnership fiscal year equals
the excess of (i) net increase, if any, in the amount of partnership minimum gain during
that fiscal year over (ii) the aggregate amount of any distributions during such fiscal year
of proceeds of a nonrecourse liability that are allocated to any increase in partnership
minimum gain, determined according to the provisions of § 1.704-2(c) of the Treas.Regs.

I.      Profits and Losses means, for each fiscal year or other period, an amount equal
to the Partnership's taxable income or loss for such year or period, determined in
accordance with Code § 703(a) (for this purpose, all items of income, gain, loss or
deduction required to be stated separately pursuant to Code § 703(a)(1) shall be
included in taxable income or loss), with the following adjustments:

       1.     Any income of the Partnership that is exempt from federal income tax and
       not otherwise taken into account in computing Profits or Losses shall be added to
       such taxable income or loss;

       2.      Any expenditures of the Partnership described in Code § 705(a)(2)(B) or
       treated as Code § 705(a)(2)(B) expenditures pursuant to Treas.Regs. § 1.704-
       1(b)(2)(iv)(b), and not otherwise taken into account in computing Profits or
       Losses pursuant to this paragraph shall be subtracted from such taxable income
               or loss;

               3.      In the event the Gross Asset Value of any Partnership asset is adjusted,
               the amount of such adjustment shall be taken into account as gain or loss from
               the disposition of such asset for purposes of computing Profits or Losses;

               4.     Gain or loss resulting from any disposition of Partnership Property with
               respect to which gain or loss is recognized for federal income tax purposes shall
               be computed by reference to the Gross Asset Value of the Property disposed of,
               notwithstanding that the adjusted tax basis of such property differs from its Gross
               Asset Value; and

               5.      In lieu of the depreciation, amortization and other cost recovery
               deductions taken into account in computing such taxable income or loss, there
               shall be taken into account Depreciation for such fiscal year or other period.

II.    Name. The name of the Partnership shall be XYZ, LLP. The business of the
Partnership, however, may be conducted under any other name selected unanimously by the
Partners.

III.    Place of Business; Execution of Lease. The location of the principal place of business
of the Partnership, and the place where the records of the Partnership shall be kept, shall be
(street address, city, state, zip code), or such other place as may from time to time be
designated by a Majority of the Partners. It is agreed that the principal place of business shall be
maintained by the Partnership under a lease in the form attached hereto as Exhibit A, and each
Partner hereby authorizes and ratifies the execution by the Partnership of such lease.

IV.    Purpose. The purpose for which the Partnership is organized is to render (describe),
which shall consist of any and all work or duties within the scope of (Name of Profession), such
as (describe). Such purposes may not be amended except upon unanimous approval of the
Partners.

V.     Term. The term of the Partnership shall commence on the date hereof and shall
continue until (date), unless earlier terminated in accordance with this Agreement or as
otherwise provided by law.

VI.     Registration and Renewal. The Partners shall acknowledge and cause to be filed in the
Office of the (Name of State) Secretary of State a statement of qualification as a limited liability
partnership, and annual reports as and when required by applicable law. The Partnership shall
cause the publication of the statement of qualification as required by applicable law.

VII.   Capital Contributions and Capital Accounts.
       A.      Capital Contributions. The Partners' Capital Contributions shall consist of:
              1.     An initial capital contribution of $ ___________ each due immediately
              upon execution hereof, and

               2.      Additional Capital Contributions, not to exceed $______________ per
               Partner in the aggregate, due upon demand therefore by a Majority of the
               Partners. Any demand for additional Capital Contributions shall be made solely in
               the discretion of a Majority of the Partners as and when they deem the finances
               of the Partnership to require such a draw. Further, whenever such a demand is
               made, an equal amount shall be demanded from each Partner.
        B.      Default. In the event of a default by any Partner in its contribution obligations,
        the other Partners shall have the right, but not the obligation, to advance extra capital in
        accordance with the provisions of Section XX hereof.

        C.    Capital Accounts. The Partnership shall maintain for each Partner a Capital
        Account in accordance with the rules of Regulations Sections 1.704-1(b) and 1.704-2.

        D.      Carryover of Capital Account Upon Transfer of Partnership Interest. Upon
        transfer of all or a part of an interest in the Partnership, the Capital Account of the
        transferor that is attributable to the transferred interest shall carry over to the transferee
        partner. Notwithstanding the preceding sentence, if the transfer of an interest in the
        Partnership causes a termination of the Partnership under § 708(b)(1)(B) of the Code,
        the Capital Account that carries over to the transferee partner will be adjusted in
        accordance with Paragraph (b)(2)(iv)(e) of Treas.Regs. § 1.704-1 in connection with the
        constructive liquidation of the Partnership under Paragraph (b)(1)(iv) of Treas.Regs. §
        1.708-1. The constructive reformation of the Partnership shall, for purposes of this
        Section 7 only, be treated as the formation of a new partnership, and the Capital
        Accounts of the Partners will be determined and maintained accordingly.

VIII.   Rights, Powers and Liabilities of the Partners.
        A.      Management of Partnership Day-to-Day Business. The day-to-day business
        of the Partnership shall be administered at the direction from time to time of a Majority of
        the Partners. A Majority of the Partners may effect such administration in any manner
        deemed appropriate by them in their sole discretion, including, without limitation, the
        appointment of a Partner as Managing Partner with or without established guidelines for
        authority and action.

        B.       Extraordinary Partnership Decisions. All Partnership decisions involving
        matters other than the day-to-day business of the Partnership, including, without
        limitation, decisions involving or relating to:

               1.     The sale, lease or other disposition of any property of the Partnership
               having a value in excess of $5,000;

               2.     The purchase or contract to purchase, by the Partnership, of any real
               property, or any asset or service with a cost to the Partnership in excess of
               $5,000;

               3.      The settlement, release or compromise of any claims or debts of or in
               favor of the Partnership;

               4.      Any transaction with an affiliate of any Partner;

               5.      The admission of a new Partner to the Partnership (provided that any new
               Partner admitted under this subparagraph shall execute a counterpart of this
               Partnership Agreement and shall agree to be bound by all of the terms and
               provisions hereof to the same extent as if he or she were an original signatory
               hereto, except that such new Partner shall have no liability with respect to
               Partnership liabilities arising prior to such new Partner's admission to the
               Partnership);
               6.      Dissolution of the Partnership prior to its stated term; or

               7.       Any other transaction in connection with which it is anticipated that the
               Partnership will expend in excess of $5,000, shall, unless a specific provision of
               this Agreement (such as Section X below or Section IV above) requires
               unanimous approval, be made only by the written consent of greater than 75% of
               the Partners, which consent a Partner may give or withhold in each Partner's sole
               and absolute discretion. Such consent may be obtained with or without a meeting
               of all of the Partners.

       C.      Nonwaiver. Except as expressly set forth in this Paragraph VIII, nothing
       contained herein shall be construed to limit or modify the duty of care, duty of loyalty or
       obligations of good faith and fair dealing of any partner, provided that:

               1.     The following categories of activities shall not be construed as a violation
               of any partner's duty of loyalty: (describe);

               2.     The following shall prescribe the standard by which the performance of
               the Partners' duty of care is to be measured: (describe); and

               3.      The following shall prescribe the standards by which the performance by
               the partners of the obligations of good faith and fair dealing are to be measured:
               (describe).

IX.      Full Time Service; Competing Activities. Each Partner shall devote all of his or her
professional time to the business of the Partnership and shall engage in no competing activity
without the written consent of all other Partners. It is agreed that any activity involving (describe)
or commercial activity substantially related to (describe) shall be deemed to be a competing
activity. Moreover, it is acknowledged that the pursuit by any Partner of business activities that
compete with the business of any client of the Partnership is potentially disadvantageous to the
Partnership, and therefore prior to engaging in any such activities, a Partner shall submit a
written proposal to the Partnership describing in detail the contemplated activities and shall not
pursue such activities without the consent of a Majority of the Partners.

X.      Decisions Requiring Unanimous Approval. Notwithstanding any other provision
hereof, a decision on any of the following matters shall require the unanimous approval of all of
the Partners, which approval a Partner may give or withhold in such Partner's sole and absolute
discretion:

       A.     Amendments of this Agreement, including any amendment to admit a new
       partner;

       B.     Any sale or other disposition of substantially all of the assets of the Partnership
       or disposition of the goodwill of the Partnership's business;

       C.      Borrowings by the Partnership in excess of $15,000 in the aggregate;

       D.     Any assignment of the property of the Partnership in trust for creditors or on the
       assignee's promise to pay the debts of the Partnership;

       E.     Any act which would make it impossible to carry on the ordinary business of the
       Partnership; or
       F.       Any confession of a judgment or submission of a Partnership claim or liability to
       arbitration or reference.

XI.      Income, Gain, Losses and Distributions. All Partnership income, loss, gain and
credits for each fiscal year shall be allocated to the Partners in accordance with their
Participation Percentage as established by the Partnership not later than ninety days following
the end of the year in question. The total Participation Percentages shall equal 100%; each
Partner shall be assigned a Participation Percentage based on such Partner's contribution to
the Partnership for the year in question. The evaluation of each Partner's contribution shall take
into consideration, among other things, such Partner's billings and collections for the year in
question, the total billed to and collected from clients whose accounts are managed by such
Partner, such Partners administrative contribution to the Partnership, and such Partner's years
of service to the Partnership. Participation Percentages shall be established by a Majority of the
Partners at a meeting held for that purpose. Notwithstanding any other provision hereof, in the
absence of willful disregard of Partnership obligations, no Partner shall be assigned a
Participation Percentage which, when applied to Partnership income for the year in question
would yield income to such Partner in an amount less than such Partner's Minimum Income
Share. Each Partner's Minimum Income Share shall be an amount equal to (a) 75% of (b)
such Partner's income for the previous year multiplied by a fraction, the numerator of which is
the Partnership's Net Income Per Partner for the year in question and the denominator of
which is the Partnership's Net Income Per Partner for the previous year. Net Income Per
Partner shall be the Partnership's adjusted income for federal income tax purposes divided by
the number of Partners for the year in question (provided that if Partners have been admitted to
or left the firm during the year in question, the total number of Partners shall be adjusted
appropriately to yield a full time equivalency). All distributions by the Partnership shall be made
pro rata to the Partners in accordance with Participation Percentages for the year(s) in question.

XII.   Books, Records, Accounting, Reports and Certain Tax Matters.
       A.    Fiscal Year. The fiscal year of the Partnership shall be the calendar year.

       B.      Books of Account. The Partnership shall keep proper and complete books of
       account adequate for its purposes. The books of account shall be maintained at its
       principal place of business and shall be open to inspection and copying by any of the
       Partners or by their authorized representatives at any reasonable time during business
       hours. Balance sheets and income reports, audited if requested by any Partner, as well
       as state and federal income tax returns, shall be prepared at Partnership expense at the
       end of each fiscal year by (name of accounting firm) or such other public accounting firm
       as hereafter selected by a Majority of the Partners.

       C.      Basis of Accounting. The Partnership books shall be kept on a cash basis.

       D.     Bank Accounts. All funds of the Partnership are to be deposited in the
       Partnership's name in such bank account or money market account or accounts as may
       be designated by a Majority of the Partners and may be withdrawn for authorized
       Partnership purposes on the signature of any Partner and such other person or persons
       as a Majority of the Partners may authorize.

       E.      Annual Reports. Within seventy-five (75) days after the close of the
       Partnership's fiscal year, the Partnership shall prepare and mail to each Partner a copy
       of the Internal Revenue Service Form K-1 as attached to the federal partnership tax
       return to be filed for the Partnership. Upon request by a Partner, the Partnership will
       provide such Partner, within ninety (90) days following the end of any fiscal year, a
       written report setting forth the following:

               1.      The assets and liabilities of the Partnership;

               2.      The net income or net loss of the Partnership;

               3.      Such Partner's Capital Account and the manner of its calculation; and

               4.     Any other information necessary to enable such Partner to prepare the
               Partner's individual income tax returns.

       F.      Meetings. Meetings of the Partners shall be scheduled for mutually convenient
       times, and each Partner shall have at least twenty-four (24) hours notice of any meeting.
       Meetings may be called by any Partner. At any meeting, a quorum shall exist only if all
       Partners are in attendance, either in person or by phone or by written proxy (including a
       facsimile transmitted proxy) given to a Partner in attendance.

       G.     Written Minutes. Written minutes of the business transacted at Partnership
       meetings (if any) shall be made and retained at the Partnership office only if requested
       by any Partner.

       H.     Tax Matters Partner. (Name of Partner) is hereby appointed as the tax matters
       partner of the Partnership within the meaning of § 6231(a)(7) of the Code.

XIII. Dealing With Affiliates; Business Opportunities. The Partnership shall not enter into
any agreements or transactions with, and shall make no payments to, Affiliates of any of the
Partners except as otherwise unanimously agreed by the Partners. It is acknowledged that from
time to time Partners shall have presented to them, by clients or by third parties, opportunities
for investment or active participation in outside business activities. It is further acknowledged
that all such opportunities shall initially constitute assets of the Partnership. When presented
with any such opportunity, a Partner shall notify the Partnership thereof in writing, and shall
include in such notification a recommendation as to whether the Partnership should pursue such
opportunity. If the Partnership elects not to pursue the opportunity, the Partner to whom it was
presented shall be free to pursue it, subject to the obligations of such Partner hereunder with
respect to, among other things, the devotion of substantially all of his or her professional time to
the business of the Partnership.

XIV. Transfer of Interests. Except with the prior written consent of all other Partners, no
Partner shall sell, assign, convey, hypothecate, encumber or otherwise create in any other party
an interest in such Partner's interest in the Partnership, and any attempt to do so shall be void.

XV.    Retirement, Withdrawal, Death, Disability, or Bankruptcy of a Partner.
       A.     Retirement. Each Partner shall be entitled to retire upon reaching the age of 55,
       and shall be required to retire (unless otherwise agreed in writing by all other Partners)
       upon reaching age 65. Upon retirement, such Partner's interest in the Partnership shall
       be redeemed for an amount equal to his or her then-current Capital Account, which
       amount shall be paid, with interest at 10% per annum, in 120 equal monthly installments.

       B.     Withdrawal. Any Partner shall have the right to withdraw from the Partnership at
       any time. If a Partner elects to withdraw prior to age 55, such Partner's interest in the
       Partnership shall be redeemed for an amount equal to his or her then-current Capital
       Account, which shall be paid, without interest, as follows: one-half of such balance shall
       be paid in 60 equal monthly installments; the remaining one-half shall be payable on the
       fifth anniversary of the date of withdrawal. If a Partner withdraws after age 55, such
       Partner shall be treated as having retired. Notwithstanding any other provision hereof, a
       Partner shall be deemed to have withdrawn from the Partnership upon revocation or
       suspension of his or her license to practice (Name of Profession) or the taking of other
       major disciplinary action against him/her as a (Name of Profession) by any governmental
       or professional authority.

       C.      Death. Upon the death of a Partner, such Partner's interest in the Partnership
       shall be redeemed for an amount equal to such Partner's then-current capital account,
       payable in twenty-four equal monthly installments, with interest at 10% per annum.

       D.        Disability. If a Partner becomes partially disabled [i.e., if as a result of injury or
       illness he or she is unable to engage in the full time practice of (Name of Profession) but
       is still able to engage in such practice on at least a part-time basis), such Partner shall
       not be required to withdraw from the Partnership, but instead such Partner's interest in
       Partnership income and loss shall be appropriately adjusted to reflect such Partner's
       reduced contribution to the Partnership. If a Partner becomes totally disabled (which
       disability shall be determined by an independent treating physician to prevent the
       Partner from engaging in the practice of accounting for a peri
				
DOCUMENT INFO
Description: The Uniform Partnership Act sets forth the mechanism by which a partnership can become a limited liability partnership, which includes the filing of a statement of qualification. The name of a limited liability partnership must include some designation of that type of organization, such as the initials “L.L.P.” at the end of the name. A limited liability partnership must file an annual report with the secretary of state, and failure to do so can result in the revocation of the partnership's statement of qualification. The Uniform Partnership Act also sets forth procedures for a foreign limited liability partnership to qualify to do business in a state. The limited liability partnership ("LLP") is a form of general partnership, created under state general partnership laws, in which partners are statutorily relieved of all or part of their personal liability for partnership liabilities, debts and obligations. Although numerous states have enacted LLP statutes, the nature and extent of relief from personal liability and the types of business enterprises that can use the LLP form varies depending on the state of LLP formation.
PARTNER William Glover
I received my B.B.A. from the University of Mississippi in 1973 and my J.D. from the University of Mississippi School of Law in 1976. I joined the firm of Wells Marble & Hurst in May 1976 as an Associate and became a Partner in 1979. While at Wells, I supervised all major real estate commercial loan transactions as well as major employment law cases. My practice also involved estate administration and general commercial law. I joined the faculty of Belhaven College, in Jackson, MS, in 1996 as Assistant Professor of Business Administration and College Attorney. While at Belhaven I taught Business Law and Business Ethics in the BBA and MBA programs; Judicial Process and Constitutional Law History for Political Science Department); and Sports Law for the Department of Sports Administration. I am now on the staff of US Legal Forms, Inc., and drafts forms, legal digests, and legal summaries. I am a LTC and was Staff Judge Advocate for the Mississippi State Guard from 2004-2008. I now serve as the Commanding Officer of the 220th MP BN at Camp McCain near Grenada, MS. I served on active duty during Hurricanes Dennis (July, 2005), Katrina (August, 2005) and Gustav in 2008. I played football at the University of Mississippi in 1969-1971 under Coach John Vaught. I am the author of the Sports Law Book (For Coaches and Administrators) and the Sports Law Handbook for Coaches and Administrators (with Legal Forms),