The West Virginia partnership agreement is a legal document that defines and formalizes the rights and duties of the business partners in their common business venture.
The partnership agreement, or partnership deed, includes information about each partner’s initial investment in the partnership, their liabilities, the decision-making process, profit sharing, and more. This provides transparency and stability in the business partnership.
The partnership agreement is also commonly referred to as the partnership contract or the articles of partnership.
West Virginia Partnership Agreement Types
West Virginia provides different types of business partnerships that partners can establish according to the nature of their business operations:
Types of Purchase Agreement
General Partnership (GP): The main feature of this type of partnership agreement is that all general partners have decision-making powers, and they are all liable for the business operations with all of their personal assets. (§ 47B-9-1 to § 47B-9-8)
Limited Partnership (LP): Here, the partnership is established between one or more limited partners that are not able to make decisions but have limited liability for the business operation and one or more general partners that are able to make decisions but have unlimited liability for the business operation. (§ 47B-9-1 to § 47B-9-8)
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. (§ 47B-10-1 to § 47B-10-5)
West Virginia Partnership Agreement Requirements
In West Virginia, the partnership agreement format should include the following:
Each partner’s full name and mailing address
Information on what type of business partnership is established
Details on the registered business activity of the partnership
Date of the partnership establishment
Information on each partner’s management or voting rights
Details on how the profits are shared between the partners
Requirements that must be met before the partnership expansion
Information on the accounts of the business partnership