When you`re starting a law firm or adding a partner to your existing practice, it`s important to have a partnership agreement in place. This legal document outlines the roles, responsibilities, and expectations for all partners involved, ensuring a smooth and successful partnership.
To help you get started, we`ve compiled a sample partnership agreement for a law firm. Keep in mind that this is just one example, and you should consult a legal professional to customize it to your specific needs and jurisdiction.
Partnership Agreement for Law Firm Sample
1. Purpose and Scope
This partnership agreement is entered into between XYZ Law Firm (hereafter referred to as the “Firm”) and Partner A and Partner B (hereafter referred to as the “Partners”) for the purpose of operating a law practice under the name of XYZ Law Firm.
2. Capital Contribution
The Partners agree to contribute capital to the Firm as follows:
Partner A: $100,000
Partner B: $150,000
The contributions will be used to cover expenses such as rent, salaries, and other overhead costs. Any profits or losses will be shared according to the percentage of capital contributions.
3. Management and Decision Making
The Partners will share management responsibilities and make decisions based on a majority vote. Each Partner will have an equal vote, and any major decisions such as hiring or firing employees or taking on new clients will require a unanimous vote.
4. Profit and Loss Distribution
The profits and losses of the Firm will be distributed to the Partners according to their percentage of capital contributions. The Partners agree to review the financial statements of the Firm at least once a year to determine the distribution of profits and losses.
5. Compensation and Benefits
The Partners will receive a salary and benefits package as determined by the Partners and approved by a majority vote. Any changes to compensation or benefits will require a unanimous vote.
6. Termination
Either Partner may terminate this partnership agreement by giving written notice to the other Partner(s) at least 90 days prior to the desired termination date. The Partners agree to work together in good faith to ensure a smooth transition.
7. Confidentiality
The Partners agree to maintain confidentiality about the affairs of the Firm and its clients, and to not disclose any confidential information to any third party without the express written consent of the other Partner(s).
8. Dispute Resolution
Any disputes that arise between the Partners will be resolved through mediation or arbitration, with a neutral third party chosen by the Partners. The decision of the third party will be final and binding.
9. Governing Law and Jurisdiction
This partnership agreement will be governed by the laws of the state in which the Firm is located. Any disputes will be resolved in the courts of that state.
Conclusion
A partnership agreement is a critical document for any law firm with more than one partner. It sets clear expectations for all parties, and helps to prevent potential disputes down the line. Use this sample partnership agreement as a starting point, and consult a legal professional to tailor it to your specific needs. With a solid partnership agreement in place, you`ll be well on your way to a successful and collaborative law practice.