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If you are creating a business with a partner, you need a partnership agreement. This also applies when you start a business with a friend or family. Partnership agreements can settle disputes, share benefits and much more. If a partner wants to leave your company, the exit rules are in the partnership contract. Compared to a business or trust, a partnership may have fewer installation and management costs. However, while companies and trusts offer some protection against liability, this is not the case for a partnership. A partnership is not a separate entity from partners. In case of responsibility of the partnership, the partners are personally responsible.

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