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The Hawaii partnership agreement is a legal document that sets rules for the relationship between the partners in a certain business venture.
By drafting the partnership agreement, the parties are minimizing the possibility of having any disputes in the future since the document will provide every aspect of the business operation, such as their contributions, managing rights, profit sharing, liability, and more.
Moreover, even if a dispute arises between the business partners, the articles of partnership will help the partners resolve the dispute more efficiently and minimize the expenses related to it.
In Hawaii, the partnership agreement is also commonly called the partnership contract or the partnership deed.
Hawaii Partnership Agreement Types
This section provides a list of all partnership agreement types used in Hawaii:
Types of Partnership Agreement
General Partnerships (GP): Here, all partners participate in the decision-making process, and they are all liable for the business operations with all of their personal assets. (§ 425-1 — 425-21)
Limited Partnership (LP): This is the business partnership between the general partners that have decision-making powers and have unlimited liability for the business operations and the limited partners that don’t have decision-making powers but have limited liability. (§ 425E-301 — 425E-306)
Limited Liability Partnership (LLP): Here, all partners are able to make decisions, and they are not liable for damages caused by the actions of other partners. (§ 425-151 — 425-173)
Hawaii Partnership Agreement Requirements
In Hawaii, the partnership agreement format should include the following:
Mandatory Requirements
Names of the business partners
Details about the business activities of the partnership
Information on the date of partnership establishment and dissolution
Rules on how the business entity will be managed
Details on how the profits are shared between the partners
Rules on how the partners will cover eventual business losses