If you are ready to go into business with one or more partners, you are ready to make a Partnership Agreement. Partnership Contracts define the responsibilities of partners within the business such as contributions and voting power, share in profit and losses, and tax obligations. In the final stage, you need to pick the law which will govern the agreement and get it signed by the relevant authorities. The future of the partnership business must be explained by explaining the process of admitting new partners. Also, you must mention what will happen if the partner dies or withdraws from the partnership. Failure to comply with any of the terms of this clause will be deemed an Involuntary Withdrawal of the offending Partner and may be treated accordingly by the remaining Partners. If there are no profits, then there are generally no distributions. The distribution of profits and losses is entirely based upon the percentage of the business startup. However, if partners wish to use some other percentage, they must mention it in the.