Does Your Partnership Need a Profit Share Agreement?

If you are conducting business with another person or people, a popular business structure is a partnership. A partnership agreement will generally govern key details of the partnership and contain terms for the division of profits. However, your business might be more complex, or you and your partner wish to delve into greater detail about your profit-sharing arrangements. In that case, you can consider drafting a profit share agreement. This agreement is also useful when two unrelated parties collaborate on a specific project (rather than conducting an ongoing business together), known as a joint venture. This article will outline what a profit share agreement is and whether your business should have one.