What to do if I’m in a business with 2 other partners but we never signed a partnership agreement?

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What to do if I’m in a business with 2 other partners but we never signed a partnership agreement?

Each partner would have contributed a percentage equity of 60%, 30%, and 10%. How should the signed agreement be done since the other partners are asking for an equal share. Shouldn’t the percentage of the company be divided based on their contributed equity?

Asked on August 12, 2013 under Business Law, Maryland

Answers:

Nathan Wagner / Law Office of Nathan Wagner

Answered 8 years ago | Contributor

The percentage of ownership could be based on the amount of the partners' investments, but it does not have to be. It could also be based on the partners' labor ("sweat equity"), their expertise, or an other contribution to the partnership. It's up to you and your partners to agree on the division of partnership earnings and assets. 


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