General Partnership Agreement Texas Template

If you are starting a business in Texas with a partner, it is essential to have a general partnership agreement (GPA) in place. A GPA is a legal document that outlines the rights, responsibilities, and obligations of each partner and helps prevent misunderstandings and disputes. Having a GPA can also make it easier to obtain financing and attract investors. In this article, we will provide a template for a general partnership agreement in Texas.

1. Partnership Name and Purpose

The GPA should start by stating the name of the partnership and its purpose. This section should also describe the nature of the business and the products or services it provides.

2. Contributions

This section outlines each partner`s capital contribution to the partnership. Capital contributions can include cash, property, or services, and they determine each partner`s ownership percentage and share of profits and losses. This section should also describe how additional capital contributions will be handled.

3. Profits and Losses

The GPA should specify how profits and losses will be allocated among partners. This section should also describe how distributions will be made and how the partnership`s financial records will be maintained.

4. Management and Decision Making

This section should outline how the partnership will be managed and how decisions will be made. This includes how partners will delegate tasks and responsibilities, how meetings will be conducted, and how disputes will be resolved.

5. Withdrawal and Dissolution

This section should describe how a partner can withdraw from the partnership and how the partnership can be dissolved. It should also outline how assets and liabilities will be distributed in the event of dissolution.

6. Confidentiality and Non-Competition

Partners should agree on confidentiality and non-compete terms in the GPA. This section should describe what information is considered confidential, how it will be protected, and what happens if a partner violates these terms.

7. Governing Law and Jurisdiction

The GPA should specify which law governs the partnership agreement and which court will have jurisdiction in case of any legal disputes.

Conclusion

A general partnership agreement is a crucial document for any business with two or more partners. This article has provided a template for a GPA in Texas, but it is essential to consult with an attorney to ensure that the agreement meets all legal requirements and covers all necessary topics. A well-written GPA can help mitigate risks and ensure a successful partnership for years to come.