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The Louisiana partnership agreement is a legal document that sets rules for the relationship between the partners in their business partnership formation.
Parties often choose to draft the partnership agreement to minimize the possibility of having any disputes in the future since the document will provide every aspect of the business operation, such as their contribution, rights, and duties, so that every partner will know their status in the business partnership.
In this way, even if a dispute arises between the partners, the partnership deed will help them resolve the dispute more efficiently and minimize the expenses related to the dispute.
In Louisiana, the partnership agreement is also called the partnership contract or the articles of partnership.
Louisiana Partnership Agreement Types
This section provides a list of all partnership agreement types used in Louisiana:
Types of Partnership Agreement
General Partnership (GP): This type of partnership agreement enables all partners to participate in the decision-making process. However, when it comes to liability, they are all liable for the business operations with all of their personal assets. (Art. 2801 to Art. 2835)
Limited Partnership (LP): This type establishes a business partnership between the general partners, who have unlimited liability for the business operations and have decision-making powers, and the limited partners, who don’t have decision-making powers but have limited liability for the business operations. (Art. 2836 to Art. 2844)
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. (Art. 3432)
Louisiana Partnership Agreement Requirements
In Louisiana, the partnership agreement format should include the following:
Mandatory Requirements
Names of the business partners
Information on what type of business partnership is established
Details about the business activities of the partnership
Information on when the partnership is established
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