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Tailoring Business Agreement

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This is an agreement that establishes a partnership for a tailoring business. Partnerships are easy to setup and provide excellent tax benefits, but each partner is held individually liable for the debts and obligations of the partnership. This agreement provides the name of each partner and the percentage of ownership they have in the business. This document contains numerous standard provisions that are commonly included in these types of agreements, and may be customized to fit the specific needs of the contracting parties. This agreement can be used by individuals that want to create a small business partnership for a tailoring service.

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									This is an agreement that establishes a partnership for a tailoring business.
Partnerships are easy to setup and provide excellent tax benefits, but each partner is
held individually liable for the debts and obligations of the partnership. This agreement
provides the name of each partner and the percentage of ownership they have in the
business. This document contains numerous standard provisions that are commonly
included in these types of agreements, and may be customized to fit the specific needs
of the contracting parties. This agreement can be used by individuals that want to
create a small business partnership for a tailoring service.
                  Tailoring Business Partnership Agreement
This partnership agreement ("Agreement") is made this ______ day of __________, 2_____
[Instruction: Insert Date] (the “Effective Date”), by and between, by and between the
following, who shall be individually and collectively referred to in this Agreement as “Partners.”

NAME                                       ADDRESS

___________ [Instruction: Insert ___________ [Instruction: Insert Address
Name]
___________ [Instruction: Insert ___________ [Instruction: Insert Address
Name]
___________ [Instruction: Insert ___________ [Instruction: Insert Address
Name]

1. NAME AND BUSINESS

The Partners hereby associate themselves together as partners and hereby form a partnership
under the name and style of _________ [Instruction: Insert Partnership Name] (the
“Partnership”) for the purpose of carrying on a tailoring business and shall have the power to do all
acts in furtherance of the Partnership business.

2. TERM

The Partnership shall commence on _______________________ [Instruction: Insert
Commencement Date] and shall continue until dissolved by agreement of the Partners or
terminated under the provisions of this Agreement.

3. PLACE OF BUSINESS

The Partnership's principal place of business shall be at __________________ [Instruction:
Insert Address]. The Partnership shall maintain any other place or places of business agreed
upon by the Partners.

4. INITIAL CONTIBUTION

The Partnership shall establish a checking account at __________________ Bank [Instruction:
Insert Bank Name], _________________ [Instruction: Insert Bank Address] (the Partnership
Checking Account”). The Partnership’s initial capital shall be _________ Dollars ($______)
[Instruction: Insert Amount].Each Partner shall contribute toward the initial capital by
depositing the following amounts in the Partnership Checking Account, on or before
_________________ [Instruction: Insert Date]:

NAME                                       CONTRIBUTION

___________ [Instruction: Insert $___________ [Instruction: Insert Contribution]

© Copyright 2011 Docstoc Inc.                                                            2
Name]
___________ [Instruction: Insert $___________ [Instruction: Insert Contribution]
Name]
___________ [Instruction: Insert $___________ [Instruction: Insert Contribution]
Name]

5. CAPITAL WITHDRAWALS

No Partner shall withdraw any portion of the Partnership capital without the other Partner's
express written consent.

6. PROFITS AND LOSSES

The Partners shall share Partnership net profits and shall bear Partnership losses as follows:

NAME                                       PERCENTAGE OF PROFITS AND LOSSES

___________ [Instruction: Insert _______% [Instruction: Insert Percentage]
Name]
___________ [Instruction: Insert _______% [Instruction: Insert Percentage]
Name]
___________ [Instruction: Insert _______% [Instruction: Insert Percentage]
Name]

The Partnership shall provide quarterly accountings of the Partnership affairs within forty five
(45) days following the close of each applicable calendar quarter. At the time of each
accounting, the net profits of the Partnership, as determined by generally accepted accounting
principles, shall be distributed to the Partners.

7. BOOKKEEPING

Partnership books of account shall be accurately kept and shall include records of all Partnership
income, expenses, assets, and liabilities. Each Partner shall have the right to inspect the
Partnership books at any time. The Partnership's fiscal year shall end on December 31 of each year.

8. TIME DEVOTED TO THE PARTNERSHIP

Each of the Partners shall be employed by and work for the Partnership Monday through Friday
from the hours of _________ a.m. [Instruction: Insert Time] to _________ p.m. [Instruction:
Insert Time], [Instruction: if applicable, Insert: and Saturday and Sunday from the hours of
_________ a.m. [Instruction: Insert Time] to _________ p.m. [Instruction: Insert Time]],
with one hour each day for lunch.

9. PARTNER’S SALARIES

As compensation for services in the Partnership business, each Partner shall be entitled to a
salary of _____________ Dollars ($_______) [Instruction: Insert Salary] per week. The

© Copyright 2011 Docstoc Inc.                                                                    3
Partnership shall deduct the Partners' salaries as ordinary business expenses prior to computing
net profits. A Partner's salary may be increased or reduced at any time by mutual agreement of
the Partners.

10. MANAGEMENT AND AUTHORITY

Each Partner shall have an equal right in the management of the Partnership. Each Partner shall have
authority to bind the Partnership in making contracts and incurring obligations in the Partnership name or
on its credit. No Partner, however, shall incur obligations in the Partnership name or on its credit
exceeding _____________ Dollars ($_______) [Instruction: Insert Amount] without the other
Partner's express written consent. Any obligation incurred in violation of this provision shall be charged
to and collected from the Partner who incurred the obligation.

11. COVENANTS OF THE PARTNERS

    A. Each partner represents and warrants that:

      i.   No money of the Partnership shall ever be used for any Partner’s private purposes.
Each Partner will be responsible for the Partner’s private debts, and in no event shall the
Partnership become liable for the private debts of any individual Partner; and

     ii. the Partner shall not to engage in any business similar to the business of the
Partnership nor to become interested in any manner, either financially or otherwise, in any such
business during the term of the Partnership.

    B. In the event that a Partner breaches the representations and warranties made in paragraph
11(A) hereof, any and all interest that said Partner may have in the Partnership shall be forfeited
to and become the property of the other Partners as liquidated damages.

12. WITHDRAWAL, DISSOCIATION, AND DISSOLUTION

   A. Upon thirty (30) days written notice, any Partner may dissociate from the Partnership by
withdrawing as a Partner. The death of a Partner shall constitute a withdrawal and dissociation.

    B. On dissociation of a Partner, the remaining Partners may continue the Partnership
business by purchasing the outgoing Partner's interest in the Partnership by paying the outgoing
Partner the fair market value of the dissociated Partner's interest, at the date of the dissociation.

      i.   The determination of the fair market value shall be made on the basis of the most
current financial information with respect to the Partnership as a whole and any other factors
relevant to such valuation, all in accordance with generally accepted accounting principles,
which principles shall be consistently applied.

     ii. The purchasing Partner(s) shall assume the outgoing Partner’s obligations. The
purchasing Partner(s) shall hold and defend the outgoing Partner, as well as any property
belonging to said Partner, free and harmless from all liability for Partnership obligations.
Immediately upon purchase of the outgoing Partner's interest, the purchasing Partner(s) shall

© Copyright 2011 Docstoc Inc.                                                                4
prepare, file, serve, and publish all notices required by law to protect the outgoing Partner from
liability for future Partnership obligations. All costs incident to the requirements of this
paragraph shall be borne by the purchasing Partner(s).

   C. Upon the occurrence of any of the following events, the Partnership shall be dissolved
and the Partnership affairs shall be wound up:

      i.   By agreement of the Partners;

     ii. In the event that the remaining Partners decline to exercise the option to purchase the
dissociated Partner's interest pursuant to paragraph 12(B) hereof; or

    iii.   Dissolution is otherwise required by law.

In connection with the winding up of the Partnership, the Partnership assets shall be liquidated,
the Partnership’s obligations to creditors (including, to the extent permitted by law, Partners who
are creditors) shall be paid, and the surplus shall be divided among the Partners pursuant to this
Agreement

13. MISCELLANEOUS

    A. This Agreement is an entire document and supersedes any and all other agreements,
either oral or in writing, between the parties hereto. If any provision of this Agreement is held
by a Court of competent jurisdiction to be invalid, void or unenforceable, it will be severed from
it and the remaining provisions shall nevertheless continue in full force and effect without being
impaired or invalidated in any way.

    B. This Agreement may only be amended or modified, in whole or in part, by an instrument
in writing signed by all parties hereto.

    C. Any waiver by any Partner of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of the same or any other provision
hereof.

    D. All notices required by these conditions to be written may be served by letter or fax.
Notices to such Party shall be served at their address shown previously in this Agreement or such
other address as such Party may have notified in writing to the others.

    E. This Agreement shall be construed in accordance with and governed for all purposes by
the laws of the State of __________ [Instruction: Insert State], applicable to contracts executed
and wholly performed therein. The Parties herein agree to submit to the personal jurisdiction and
venue of Federal and State courts located in ________ County [Instruction: Insert County],
State of ______________ [Instruction: Insert State].

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© Copyright 2011 Docstoc Inc.                                                           5
IN WITNESS WHEREOF this Agreement has been duly executed by the parties hereto as of the
day and year first written above.



________________________________ [Instruction: sign]
___________________________ [Instruction: Insert Name of Signatory]


________________________________ [Instruction: sign]
___________________________ [Instruction: Insert Name of Signatory]


________________________________ [Instruction: sign]
___________________________ [Instruction: Insert Name of Signatory]




© Copyright 2011 Docstoc Inc.                                                6

								
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