SMALL BUSINESS PARTNERSHIP AGREEMENT

Small Business Partnership Agreement

A partnership agreement between Northwind Studio and Acme Co establishing capital contributions, roles, profit sharing, and exit terms for a small business partnership.

PARTNER A

Northwind Studio

PARTNER B

Acme Co

DATE

August 18, 2026

Northwind Studio

SMALL BUSINESS PARTNERSHIP AGREEMENT

Partnership Formation

This agreement is entered into by Northwind Studio and Acme Co (each a "Partner", together the "Partners") to establish a partnership carrying on the business described on the acceptance page. Each Partner acts as a general partner with joint authority to manage the business.

PARTNERS

Additional partners require unanimous written consent.

DEFAULT SPLIT

50 / 50

Profits, losses, and voting rights split evenly.

TERM

At will

Continues until terminated per the exit terms below.

Recitals

The Partners have decided to operate a joint business and want a written agreement that captures how the business is governed, how profits and losses are shared, how decisions are made, and how a partner can exit if circumstances change. This agreement supersedes any prior verbal or written arrangement on the same subject.

Northwind Studio

SMALL BUSINESS PARTNERSHIP AGREEMENT

Roles, Capital and Decisions

The agreement is organized around three operating areas that together define how the partners work with each other and with the business.

AREA 1 · ROLES AND CONTRIBUTIONS

Roles and capital contributions

Each Partner's role, primary responsibilities, and expected time commitment are stated on the acceptance page. Initial capital contributions and any property contributed in kind are also recorded there and booked to the respective capital accounts.

AREA 2 · DECISION MAKING

Decision making

Day-to-day operating decisions can be made independently by either Partner. Major decisions - contracts over $10,000, hiring, taking on debt, admitting a partner, changing the business direction, or dissolving - require unanimous written consent.

AREA 3 · BOOKS AND MEETINGS

Books, meetings and disputes

Books are kept on the accrual basis and available to either Partner on request. A monthly partner meeting reviews financials and pipeline. Deadlocks are first mediated by a mutually agreed third party before any partner exit is invoked.

Partner obligations

Dedicate the agreed time commitment to the business
Do not engage in materially competing activity without written consent
Maintain confidentiality of business information and customer data
Contribute additional capital only by unanimous written agreement
Act in good faith and in the best interest of the partnership

Reserved matters: the sale of the business, changes to the profit share, and admission of new partners require unanimous written consent.

Northwind Studio

SMALL BUSINESS PARTNERSHIP AGREEMENT

Profits, Distributions and Exit

Profits and losses are shared by the Partners in the ratio recorded on the acceptance page. Distributions are declared quarterly, subject to the business retaining sufficient working capital.

Item	Rate	Qty	Amount
Profit share per Partner (default)	50%	1	50%
Loss share per Partner (default)	50%	1	50%
Buy-out multiple of trailing 12-month EBITDA	3x	1	3x

Exit Events

Event	Process	Notes
Voluntary exit	Right of first refusal	Remaining partner buys out at formula
Death or incapacity	Buy-out from estate	At the buy-out formula
Material breach	30-day cure	Then forced buy-out at 80% of formula

Non-Compete and Non-Solicit

A departing Partner is subject to a 12-month non-compete within the business's operating region and a 24-month non-solicit of customers and employees.

Northwind Studio

SMALL BUSINESS PARTNERSHIP AGREEMENT

Acceptance

To form the partnership, complete the fields below and sign. Both Partners should retain a signed copy with the business records.

BUSINESS NAME AND DESCRIPTION

Business name and one-line description

INITIAL CAPITAL CONTRIBUTIONS AND ROLES

Each Partner's contribution and role

I confirm I am entering into this partnership on the terms stated above.

PARTNER B

Sign here

Acme Co

PARTNER A

Sign here

Northwind Studio

About this template

The Small Business Partnership Agreement template is a five-page document for formalizing a partnership before the business starts operating. It carries an overview with stat cards, recitals, a three-area breakdown of roles and decision-making, a default profit and buy-out table, and an acceptance page with inputs and signatures.

It is intentionally simple: rename what needs renaming in Bonsai, list your actual capital contributions and roles, and set the split. Merge fields handle the partner details and date, and the last page collects the business name, capital contributions, and both signatures.

Details

Format: Doc · 5 pages

Recipients: Client + Provider

Signature: Client + Provider

Merge fields: Sender, Receiver, Date

Small Business Partnership Agreement Template

Small Business Partnership Agreement Template