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Is a written agreement required for all partnerships?

While a written agreement is not always legally required to form a partnership, it is highly recommended that all partnerships have a written agreement in place. A written partnership agreement can help avoid misunderstandings and disputes between partners, and it can clarify the roles, responsibilities, and expectations of each partner.

In the absence of a written agreement, partnerships are typically governed by default rules under state law, such as the Uniform Partnership Act (UPA) or Revised Uniform Partnership Act (RUPA). These default rules may not reflect the specific needs or goals of the partners, and may not provide enough protection for the partners' interests.

A partnership agreement typically covers important topics such as:

Profit and loss sharing

Decision-making

Partner contributions and distributions

Management responsibilities

Dispute resolution

Partner exit and dissolution

Confidentiality and non-compete clauses

Taxation

It's important to note that the specific requirements for partnership agreements may vary depending on the state and the partnership agreement itself. It is recommended that you consult with an attorney to ensure that your partnership agreement meets all necessary legal requirements and protects the interests of all partners.

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