Standard Partnerships, Limited Liability Partnerships and Joint Venture Agreements

It can be hard to make money on your own, whether you’re just starting out in business or simply need to enter into a new financial venture. That’s why people establish partnerships, ideally for the mutually-beneficial combination of two or three minds (and pockets) that help blaze new trails.

Of course, not all partnerships work out quite so well as Lewis and Clark, which is why it’s important to ensure that your partnership agreements are put to paper if you’re going to have any hope of being treated fairly in a court of law…should it come to that. And that’s what standard partnerships, limited liability partnerships and joint venture agreements are all about: setting the structure of the partnership to come and giving each member of said partnership a legal grounding should they ever have any grievances against the other partners.

Standard Partnerships are simply agreements that outline what will happen with one of these ventures. They assign duties, roles, and even titles in some cases.

Limited Liability Partnerships are agreements along a similar vein, but come with added protection against getting sued – hence the words “limited liability.” These are good ways to reduce individual risk while still setting up a strong structure for a future partnership.

Joint Venture Agreements might not technically establish people as partners, but it will essentially render them so because they both agree to an undertaking. This can be a more informal approach to business, but the legality of the structure holds the same weight as it does in the other agreements mentioned here.

How do you know which type of partnership is right for you? That's a tough call. Talk to your other partners and review the different types of partnerships outlined in each of these documents. Chances are, one of them will stick out as the best choice for your collective needs.