What is a business ownership agreement?
An Owners Agreement is a document between the owners of a company about how to manage the business. Sometimes these documents are called Buy-Sell Agreements or Shareholders Agreements (depending on the structure of the business).
Can two people own a business together?
Partnerships. If two or more individuals wish to form a business together, a partnership is often the appropriate form of business. Profits and losses are taxed to the owners of the partnership directly. Note that also like a sole proprietorship a partnership provides the owners with no liability protection.
What should be included in a business partnership agreement?
What to include in your partnership agreement
Co-Owners. Partnership and co-ownership are two different things. With co-ownership, there is no such agency relationship. Each co-owner is only responsible for their own actions, and they do not have to act in the interests of the owned asset.
In general, an LLC offers better liability protection and more tax flexibility than a partnership. But the type of business you're in, the management structure, and your state's laws may tip the scales toward partnership.
Aside from formation requirements, the main difference between a partnership and an LLC is that partners are personally liable for any business debts of the partnership -- meaning that creditors of the partnership can go after the partners' personal assets -- while members (owners) of an LLC are not personally liable
Under the template for a 50/50 partnership agreement, each partner shares equally in any profit or loss generated from the business. In addition, each partner has an equal voice in managing the business. Decisions are shared equally.