The Ohio partnership agreement is a legal document that outlines all the rules for how the partnership will be organized and operated after its establishment.
Although the partnership agreement or partnership contract is not always required for the establishment of the business partnership, the partners often choose to make one since federal and state laws don’t provide very detailed regulations on the business partnership operation.
Therefore, the partners often choose to create this kind of document to customize the federal and state provisions and determine the relationship between the partners in the business partnership.
The Ohio partnership agreement is also referred to as the partnership deed or the articles of partnership.
Ohio Partnership Agreement Types
In Ohio, there are several types of partnership agreements that partners can choose from:
Types of Purchase Agreement
General Partnership (GP): Here, all partners are able to participate in the decision-making process. However, they are all responsible with all of their personal assets for the liabilities of the partnership. (§1776.01 to § 1776.96)
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 all of their personal assets, and the limited partners, who have limited liability for the partnership operation but have limited decision-making powers. (§ 1782.01 to § 1782.65)
Limited Liability Partnership (LLP): Here, all partners equally participate in the decision-making process, and their liability is limited only to the decisions they have personally made. (§1776.81 and § 1776.82)
Ohio Partnership Agreement Requirements
In Ohio, the partnership agreement format will include the following elements:
Full names and mailing addresses of the partners
Name and registered address of the partnership
Date of partnership establishment
Information on each partner’s initial contribution
Information about each partner’s management and voting rights
Rules on profit distribution
Details on how the partners will cover eventual losses