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The Virginia business partnership is a legal document that outlines the essential details of the relationship between the partners within the business partnership.
Partners often choose to draft the partnership agreement or the partnership contract to minimize the possibility of any misunderstandings and disputes in the future since the document outlines all the important details about the partnership and its operation.
These are often the details about each partner's initial investment in the partnership, as well as their management, voting, and profit-sharing rights within the partnership.
The Virginia partnership agreement is also called the “articles of partnership” or “partnership deed.”
Virginia Partnership Agreement Types
In Virginia, partners can choose between the various types of partnership agreements:
Types of Purchase Agreement
General Partnership (GP): Here, all partners are authorized 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. (§ 73.1 to § 73.78)
Limited Partnership (LP): This is the partnership between the general partners, who can make decisions and have unlimited liability for the business operations, and the limited partners, who are not able to make decisions but have limited liability. (§ 73.1 to § 73.78)
Limited Liability Partnership (LLP): Here, all partners equally participate in the decision-making process. Moreover, they are all protected from liabilities caused by the actions of other partners. (§ 73.1 to § 73.78)
Virginia Partnership Agreement Requirements
The Virginia partnership agreement format should include the following:
Mandatory Requirements
Details about the identity of the business partners
Information on what type of partnership is being established
Date of establishment of the business partnership
Information about the initial contribution of each partner
Information on each partner's role in the partnership
Description of each partner’s management or voting rights
Details on how the profits are distributed between the partners
Rules on how the partners will cover eventual business losses