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The Maine partnership agreement is a legal document that governs all the activities of business partners within the business entity to ensure smooth collaboration within the business partnership.
Federal and state laws often don’t provide detailed provisions on the operation of business partnerships, leaving it to the business partners to provide the details on how the business entity will organize itself.
Therefore, the partnership agreement, or partnership deed, can be a crucial document that provides specific rules within the framework set out by federal and state laws. This provides more stability within the business organization and prevents misunderstandings between the partners.
The Maine partnership agreement is also commonly called the “articles of partnership” or the “partnership contract.”
Maine Partnership Agreement Types
In Maine, partners can choose between the various types of partnership agreements:
Types of Partnership Agreement
General Partnership (GP): Here, all partners are able to participate in the decision-making process. However, they all have unlimited liability for the operations of the business entity with all of their personal assets. (31 §1001 to 31 §1105)
Limited Partnership (LP): This is the partnership between the general partners, who are able to make decisions and have unlimited liability for the business operations, and the limited partners, who cannot make decisions but have limited liability. (31 §1341 to 31 §1346)
Limited Liability Partnership (LLP): With this type of partnership, all partners have equal decision-making powers, and they are protected from liabilities caused by the actions of other partners. (31 §801 to 31 §876)
Maine Partnership Agreement Requirements
The Maine partnership agreement format should include the following:
Mandatory Requirements
Names and mailing addresses of the business partners
Details about the business activities of the business entity
Information on initial investment of each partner
Rules on how the business entity will be managed
Information on how the profits are shared between the partners
Rules on how the partners will cover eventual business losses
Optionally, information on how the partnership will eventually dissolve