Updated March 19, 2024
An Alabama partnership agreement is a contract that outlines the ownership, management, and roles of each partner entering into a partnership agreement. The ownership of each partner is recorded in this agreement and their personal liability. In a general partnership, all partners will share equal liability versus limited partnerships that only requires the active individuals to be liable.
A partnership agreement is not considered binding until it is signed by all partners of the entity.
“Partnership Agreement” Definition
“Any agreement (whether referred to as a partnership agreement or otherwise), written, oral or implied, of the partners as to the activities and affairs of a general partnership or a limited partnership. The partnership agreement includes any amendments to the partnership agreement. In the case of limited partnerships formed prior to October 1, 1998, partnership agreement includes the certificate of partnership.”[1]
Allowed Partnership Types
- General Partnerships (GP)[2]
- Limited Partnership (LP)[3]
- Limited Liability Partnership (LLP)[4]
- Limited Liability Limited Partnership (LLLP)[5]
- Limited Liability Companies (LLC)[6]