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The Kansas partnership agreement is a legal document that defines all the details of how the business partners will operate within the business entity. It will define their contributions, rights, and responsibilities towards the business entity.
The partnership agreement, or articles of partnership, is often used when applying for loans from financial institutions or in the process of business expansion. Third parties and potential investors will often require the partners to see the partnership agreement and get to know the operations inside the business partnership before investing in or giving a loan to the business entity.
In Kansas, this document is also commonly called the “partnership deed” or the “partnership contract.”
Kansas Partnership Agreement Types
This section provides different types of partnership agreements that can be used in Kansas:
Types of Partnership Agreement
General Partnership (GP): This type enables all partners to have decision-making powers. However, they all have unlimited liability for business operations with all of their personal assets. (§56a-101 to §56a-1305)
Limited Partnership (LP): Here, the partnership is formed between the general partners, who have unlimited liability for the business operation and have decision-making powers, and the limited partners, who don’t have decision-making powers but have limited liability. (§56-1a101 to §56-1a610)
Limited Liability Partnership (LLP): With this type of partnership agreement, all partners have equal authority to make decisions, and they are not liable for their partners' negligence. (§56a-1001 to §56a-1004)
Kansas Partnership Agreement Requirements
In Kansas, the partnership agreement format will include the following elements:
Mandatory Requirements
Details about the partners
Name and registered address of the partnership
Date of partnership formation and dissolution (if known at the moment of formation)
Details about each partner’s initial investment in the partnership
Information about each partner’s management rights
Rules on profit distribution
Information about the accounts of the partnership
Conditions that must be fulfilled before the eventual partnership expansion
Rules on how the partners will cover eventual losses