What is a partnership agreement?
A partnership agreement is a contract between business partners that sets out how profits are shared, how decisions are made, and each partner's rights and obligations.
Business & Startups
Partnership Agreement
Generate a partnership agreement for Australian business partners, addressing profit sharing, decision-making, and liability under state and territory Partnership Acts.
- Create a general partnership agreement
Generate a partnership agreement between [Partner 1] and [Partner 2] for [Business Name], covering capital contributions, profit and loss sharing percentages, and decision-making authority, consistent with the relevant state or territory Partnership Act.
- Create a professional services partnership agreement
Generate a partnership agreement for a professional services firm operated by [Partner 1], [Partner 2], and [Partner 3], covering client responsibility, drawings, and admission of new partners.
- Create a partnership dissolution / exit clause
Generate a dissolution and exit clause for the partnership agreement of [Business Name], setting out how a partner's share is valued and paid out if they retire, resign, or the partnership is wound up.
Partnership Agreement Generator (Australia)
A partnership agreement is the contract between two or more people running a business together that sets out profit sharing, decision-making authority, and each partner's obligations, supplementing the default rules in each state or territory's Partnership Act. This free Australian partnership agreement generator produces agreements for new business partnerships and professional partnerships, covering capital contributions, profit and loss distribution, and how disputes or a partner's exit are handled. It is designed for Australian co-founders, professional practices, and family businesses operating as a partnership rather than a company. Because partners in a general partnership typically have unlimited joint and several liability for partnership debts, the generator lets you set clear rules for decision-making authority and financial contributions to reduce disputes. Use it to avoid relying on the often unsuitable default rules that apply when no partnership agreement exists.
Frequently asked questions
Do I need a written partnership agreement in Australia?
It is not legally required, but strongly recommended, since without one the default rules under the relevant state or territory Partnership Act apply, which often assume equal profit shares regardless of contribution.
Are partners personally liable for partnership debts in Australia?
Yes. In a general partnership, partners typically have unlimited joint and several liability, meaning each partner can be personally responsible for the full debts of the partnership.
What should a partnership agreement include?
Capital contributions, profit and loss sharing ratios, decision-making and voting rules, how new partners are admitted, and what happens if a partner wants to leave or the partnership dissolves.
How is a partnership different from a company in Australia?
A partnership is not a separate legal entity and partners are personally liable, while a company is a separate legal entity that generally limits owners' liability to their shareholding.
What happens if a partner wants to leave the partnership?
The partnership agreement should set out how the departing partner's share is valued and paid out, and whether the partnership continues or dissolves, to avoid disputes under the default Partnership Act rules.