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The North Dakota 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 partnership deed, includes details on the initial investment of each partner in the business partnership, profit share, liability, management and voting rights, and other details relevant to the business operation.
This provides transparency and stability among partners and towards any third party that is cooperating with the business partnership.
In North Dakota, the partnership agreement is also referred to as the “partnership contract” or the “articles of partnership.”
North Dakota Partnership Agreement Types
This section provides a list of all partnership agreement types used in North Dakota:
Types of Partnership Agreement
General Partnership (GP): Here, all partners are able to participate in a decision-making process. However, when it comes to liability, they are all liable for the business operations with all of their personal assets. (Title 45, Chapters 13 to 21)
Limited Partnership (LP): This is a business partnership between general partners, who have unlimited liability for the business operations and have decision-making powers, and limited partners, who don’t have decision-making powers but have limited liability for the business operations. (Title 45, Chapter 10.2)
Limited Liability Partnership (LLP): Here, all partners make decisions equally, and they are not liable for damages caused by the actions of other partners. (Title 45, Chapter 22)
North Dakota Partnership Agreement Requirements
In North Dakota, the partnership agreement format should include the following:
Mandatory Requirements
Details about the business partners
Information on what type of business partnership is established
Details about the registered business activity and address 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
Information on the accounts of the business partnership