Proforma Llp Agreement
If you`re looking to start a Limited Liability Partnership (LLP), you`ll need to draft a proforma agreement. A proforma LLP agreement outlines the terms and conditions that will govern the relationship between the partners. While the exact terms vary depending on the nature of the partnership, there are certain clauses that should always be included in the proforma LLP agreement.
1. Name and Address of Partners
The proforma LLP agreement should list the names and addresses of all the partners in the LLP. This information is crucial for the smooth functioning of the partnership and ensures that all partners are on the same page from the outset.
2. Purpose of the LLP
The purpose of the LLP should be clearly stated in the proforma agreement. This section should detail the goals and objectives of the partnership, as well as the services or products it plans to offer.
3. Capital Contributions
Capital contributions are the monies that partners contribute to the partnership to fund its operations. The proforma agreement should specify the amount of capital each partner is expected to contribute and the timeline for these contributions.
4. Profit and Loss Sharing
The proforma agreement should specify how profits and losses will be shared among the partners. Profit sharing may be equal, or it may be based on the capital contributions made by each partner.
5. Management of the LLP
The proforma agreement should outline how the LLP will be managed, including the roles and responsibilities of each partner. This section may also specify how decisions will be made, such as requiring a unanimous vote or a majority vote.
6. Dissolution of the LLP
The proforma agreement should outline the process for dissolving the partnership. This may include how to distribute assets and liabilities if the partnership is terminated.
In conclusion, a proforma LLP agreement is an important document that sets the foundation for a successful partnership. By including these key clauses, partners can protect their interests and ensure a smooth functioning of the partnership. It`s important to work with a professional attorney to draft a proforma LLP agreement that is tailored to your specific needs and goals.