Sign a partnership agreement online

Why a written partnership agreement matters

Two people can form a partnership without signing anything: in England, it exists whenever persons carry on a business in common with a view of profit, under the Partnership Act 1890. Without an agreement, the Act's default rules apply. Under section 24, for example, partners share profits equally, whatever each contributed, and no new partner can join without everyone's consent.

Those defaults surprise people. A partner who put in 80 percent of the capital may find they are only entitled to half the profit. A written agreement replaces the defaults with terms the partners actually chose. US states have similar defaults under the Uniform Partnership Act and its revised version.

What the agreement should settle

Most partnership disputes arise when someone leaves. Draft for that day.

• Capital contributions and whether interest is paid on capital.
• Profit and loss shares, and drawings each partner may take.
• Decision-making: what needs a majority, what needs unanimity.
• Admission of new partners.
• Retirement, expulsion, death and incapacity, and how an outgoing partner's share is valued and paid.
• Restrictions on competing after leaving.
• Dispute resolution, such as mediation before court.

Partnerships, LLPs and limited partnerships

A general partnership leaves each partner personally liable for the firm's debts. A limited liability partnership (LLP), available in the UK under the Limited Liability Partnerships Act 2000 and in most US states, gives members limited liability; its members' agreement plays the same role as a partnership agreement. Limited partnerships, often used for investment funds, separate general partners who manage from limited partners who invest.

Registration rules differ. A UK LLP is registered at Companies House, but its members' agreement stays private. Check the registration requirements where you are; this is not legal advice.

Deed or simple contract, and witnesses

Many partnership agreements are signed as simple contracts. Some are executed as deeds, often called a 'partnership deed', which in England and Wales means each partner signs in the presence of a witness who attests the signature. An electronic deed works if the witness is physically present when the partner signs and then signs the witness block.

In India, partnership deeds are typically executed on stamp paper and may need registration with the Registrar of Firms; India's Information Technology Act also excludes some documents from electronic execution. Check local stamping and registration rules before relying on an e-signed deed.

Common mistakes

One partner signing on behalf of all. Each partner should sign personally. Agreements that set profit shares but never say how a departing partner is paid out. Forgetting to update the agreement when a new partner joins, so the newcomer is not bound by it.

Getting every partner to sign in Sign PDF

Upload the agreement. Sign PDF reads the signature page and places a block for each named partner, plus witness blocks if the agreement has them. Type 'each partner initials every page' to add initials for everyone. There is no limit on the number of signers per document on either plan.

Send to everyone at once, and each partner signs from their own email link after confirming a code. The certificate of completion lists every partner with their email, IP address and the time they signed, which matters when partners are in different cities or countries.