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50/50 Business Partnership Agreement
A 50-50 Business Partnership Agreement Template helps two partners with equal ownership set clear rules for running the business together. Use this free, ready-to-edit template to outline decision-making, profit sharing, and what happens if one partner wants out. Simply fill in the blanks, download, and get it signed in minutes.
What Is a 50-50 Business Partnership Agreement and Why Do You Need One?
A 50-50 Business Partnership Agreement is a written contract between two partners who each own an equal half of the business. While splitting ownership evenly feels fair, it can also create unique challenges, such as what happens when the two partners disagree on a major decision and neither side has the deciding vote. This agreement spells out how equal decisions will be made, how profits and losses are shared, and what steps to take if the partnership needs to be dissolved or one partner wants to exit, helping prevent the business from getting stuck when both partners don't see eye to eye.
Why Use a Ready-Made Template Instead of Writing One Yourself
Writing a 50-50 partnership agreement from scratch can be tricky, since equal ownership needs extra attention to tie-breaking rules and exit terms that a normal partnership agreement might not fully cover. A ready-made 50-50 Business Partnership Agreement Template already includes the key sections, such as equal capital contributions, shared decision-making rules, tie-breaking procedures, profit and loss splits, and buyout terms, so you only need to add your specific business details. This saves time, helps prevent future deadlocks, and gives both partners a clear plan from day one.
Who Should Use This 50-50 Business Partnership Agreement Template
This template is useful for two friends, family members, or business associates starting a company together as equal owners, as well as co-founders who have agreed to split ownership evenly from the start. It is especially helpful for partnerships where both people are contributing similar amounts of money, time, or expertise, and want a fair, balanced agreement that reflects their equal stake in the business.
How to Fill Out and Use This 50-50 Business Partnership Agreement Correctly
Start by adding the full names of both partners and the name of the business being formed. Next, confirm each partner's equal ownership percentage and capital contribution, whether in cash, assets, or sweat equity. Add a section on how day-to-day decisions and major decisions will be made, including a tie-breaking method, such as a neutral third party or a cooling-off period, since no partner has majority control. Include how profits and losses will be split, along with an exit clause explaining how a partner can leave and how their share will be bought out. Finally, both partners should review, sign, and date the agreement, and it's a good idea to have it reviewed by a local attorney.
How to Use Agreed Templates
Start With the Template
Open the Product Agreement Template in your Agreed workspace and begin with a ready-to-use agreement structure.
Customize Agreement Details
Add or edit product details, responsibilities, pricing, deliverables, timelines, and other terms to match your agreement needs.
Review, Sign & Manage
Send the agreement for review and approval, collect signatures, and manage the completed agreement securely in Agreed.
Frequently Asked Questions.
Everything you need to know about Agreed. Can't find what you're looking for?
Most agreements include a tie-breaking method, such as bringing in a neutral mediator, a coin flip for minor issues, or a buy-sell clause that lets one partner offer to buy out the other if they truly can't agree.
It can be, since neither partner has final say on disputes, which is why a strong agreement with clear decision-making and exit terms is especially important for equal partnerships.
Most agreements include a buyout clause that explains how the departing partner's share will be valued and purchased, often giving the remaining partner the first right to buy them out.
Yes, partners can agree to change ownership percentages at any time by updating the partnership agreement in writing, often due to one partner investing more money or taking on more responsibility.
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