The Colorado partnership agreement is a legal document that formalizes the agreement between the partners on how a certain business entity will be operated.
Partners use this document to protect their rights and interests, clarify and optimize their business operations, and prevent any misunderstandings or disputes regarding their business partnership.
The Colorado partnership agreement is, in practice, often referred to as:
Colorado Partnership Agreement Also Known As
Colorado partnership contract
Colorado partnership deed
Colorado articles of partnership
However, regardless of the name, the main characteristic of this document is to regulate all aspects of business partnerships not determined by federal or state law.
Colorado Partnership Agreement Types
In this section, you can see different types of partnership agreements commonly used in Colorado:
Types of Partnership Agreement
General Partnerships (GP): It enables all partners to participate in the decision-making process but requires them to have unlimited liability for the business entity with their personal assets. (§ 7-62-401 to 7-62-105)
Limited Partnership (LP): This is a partnership between the general partners, who can make decisions and have unlimited liability, and limited partners, who can’t make decisions but have limited liability over the business entity. (§ 7-62-301 to § 7-62-306)
Limited Liability Companies (LLC): Here, the partners can make decisions themselves or authorize another person to manage the company. Moreover, their liability is limited to the amount of their investment in the company. (Article 80 - Limited Liability Companies)
Colorado Partnership Agreement Requirements
In Colorado, the partnership agreement format will include the following elements:
Information about the partners
Name and purpose of the partnership
Formation and dissolution of the partnership (if known)
Registered address of the business entity
Information on each partner’s contribution
Information about the entity’s management
Rules on profit distribution
Rules on how the partners will cover eventual losses