What happens if we don't have a written partnership agreement?

 

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14. What happens if we don't have a written partnership agreement?

Failing to prepare a partnership agreement increases the likelihood of disputes between the partners, and can make it more difficult to resolve them.

Also, it you fail to prepare an agreement, then it will be assumed that all partners are equal. They will have an equal role in decision-making and be entitled to equal profit shares. If this is not your intention, you must have an agreement.