The Nebraska partnership agreement is a legal document that defines and formalizes the rights and responsibilities of partners in a joint business venture.
The partnership agreement, or the articles of partnership, includes details on the initial contribution of each partner in the business organization and, according to their contribution, determines the management and voting rights of each partner, as well as their profit share.
This provides transparency and stability among the partners and towards any third party that is cooperating with the business partnership.
In Nebraska, the partnership agreement is also called the “partnership deed” or the “partnership contract.”
Nebraska Partnership Agreement Types
Nebraska provides different types of business partnerships that partners can establish according to the nature of their business operations:
Types of Partnership Agreement
General Partnership (GP): The main feature of this type of partnership agreement is that all general partners have decision-making power, and they all have unlimited liability for the business operations with all of their personal assets. (§ 67-253 to § 67-264)
Limited Partnership (LP): Here, the partnership is established between one or more limited partners that are not authorized to make decisions but have limited liability and one or more general partners that are authorized to make decisions but have unlimited liability. (§ 67-233 to § 67-448)
Limited Liability Partnership (LLP): This type of partnership enables all partners to participate in the decision-making process. Moreover, their liability is limited only to the damages caused by their own actions. (§ 67-409, § 67-448.02, and § 67-454 to § 67-465)
Nebraska Partnership Agreement Requirements
The Nebraska partnership agreement format should include the following:
Names and mailing addresses of the partners
Information about the formation of the partnership
Details on the initial investment of each partner
Description of each partner's role in the partnership
Information on each partner's managing or voting rights
Details on how the profits are distributed between the partners
Information on how the eventual business losses will be covered
Optionally, information on how the partnership will eventually be dissolved