The Connecticut partnership agreement is a legal document that outlines the terms and conditions under which the partners will operate within the business partnership.
Although a partnership agreement or partnership contract is not always required in a certain state for business formation, the parties often choose to make one.
The main reason for this is that the federal and state laws that regulate partnerships don’t often provide many details. Therefore, the partners will draft this document to specify every aspect of their business cooperation and prevent potential disputes.
The Connecticut partnership agreement is also referred to as a “partnership deed” or “articles of partnership.”
Connecticut Partnership Agreement Types
In Connecticut, there are several types of partnership agreements that partners can choose from:
Types of Partnership Agreement
General Partnerships (GP): Here, all partners participate in the decision-making process, and they are all responsible for the business liabilities with all of their personal assets. (§ 34-17)
Limited Partnership (LP): A partnership between the general partners, who have decision-making powers but are fully liable for the operation of the partnership with their assets, and the limited partners, who have limited liability and decision-making powers. (Chapter 610)
Limited Liability Partnership (LLP): With this type, all partners make decisions equally, but their liability is limited only to the decisions they have personally made. (§ 34-406 to 34-435)
Connecticut Partnership Agreement Requirements
In Connecticut, the partnership agreement format will include the following elements:
Details about the partners
Name and registered address of the partnership
Date of partnership formation and dissolution
Information on each partner’s contribution
Information about each partner’s management rights
Rules on profit distribution
Details on how the partners will cover eventual losses