Partnership Agreement Amendment

One of the biggest advantages is that it is a business structure that is easy to set up. Getting a startup off the ground is less complicated with a partnership. Another advantage is that the workload can be evenly distributed, if so desired, and the rewards can be too. Becoming a partner can be a motivation for people to want to stay with a company. Law firms are commonly partnerships and you must have heard of this or that attorney proudly announces to the world that he or she has been “made a partner.”

It can become more complicated with the number of partners. Also, unlike the corporation business structure that shields the owners from individual liability, the partnership business structure does not. As such, the partners can be liable for anything that a partnership inflicts on others, whether it is real or alleged, and this could include claims of fraud and personal injury.

Without a Partnership Amendment, nothing about the changes is official. The original Partnership Agreement still holds. All partners may agree to the changes now but any one of them could change their mind later and cause friction in the partnership.

When one of the partners decides to leave the partnership for whatever reason, he or she will need a notice of partnership withdrawal. This is otherwise known as a voluntary partnership withdrawal. Conversely, the involuntary notice of partnership withdrawal is used if the partners come together and decide to force one partner out of the partnership. This type of partnership withdrawal is usually posted in local newspapers or filed with the state.

This is a declaration of intent that the partners would like to dissolve the partnership. The agreement would detail how the affairs of the partnership are to be conducted leading to the eventual dissolution. It can also happen that after one or more partners leave a partnership, the partnership becomes unviable and the remaining partners would dissolve the partnership and figure out something else.