![Download Massachusetts Partnership Agreement Templates [PDF]](/_next/image?url=%2Fimages%2Fdocuments%2Fplaceholder-general.png&w=3840&q=75)
The Massachusetts partnership agreement is a legal document that outlines all the rules of the business partnership operation.
Although the partnership agreement, or the articles of partnership, are not always required in a certain state for establishing the business, the parties often choose to draft one since the federal and state laws only create a broad legal framework that the partners can later specify with the internal documents.
Therefore, the partners choose to make a partnership agreement, provide specific rules for their establishment, operation, and eventual dissolution of their business, and prevent potential misunderstandings or disputes between them.
The Massachusetts partnership agreement has a few synonyms that are also commonly used in practice, such as “partnership contract” or “partnership deed.”
Massachusetts Partnership Agreement Types
In Massachusetts, there are several types of partnership agreements that partners can choose from:
Types of Partnership Agreement
General Partnership (GP): This type of partnership enables all partners to participate in the decision-making process. However, they are all responsible for the business liabilities with all of their personal assets. (Chapter 108A)
Limited Partnership (LP): This is a partnership between the general partners, who have decision-making powers but are fully liable for the partnership operations with their personal assets, and the limited partners, who have limited liability and limited decision-making powers. (Chapter 109)
Limited Liability Partnership (LLP): Here, all partners are able to make decisions equally, but their liability is limited only to the decisions they have personally made. (Chapter 108A, Section 45)
Massachusetts Partnership Agreement Requirements
In Massachusetts, the partnership agreement format will include the following elements:
Mandatory Requirements
Information about the partners
Name and registered address of the partnership
Date of partnership formation and dissolution
Information on each partner’s initial investment
Information about each partner’s management and voting rights
Rules on profit distribution
Details on how the partners will cover eventual losses