38 Best Limited Partnership Agreement Templates

1. Define Roles and Capital Contributions
Specify the roles of general partners and limited partners, including voting rights, decision-making authority, and management responsibilities. Clearly document initial capital contributions, ownership percentages, and any future funding obligations to prevent disputes.

2. Clarify Profit, Loss, and Distribution Rules
Detail how profits and losses are allocated among partners and the timing and method of distributions. Include preferred returns, waterfall structures, tax allocations, and any special allocations to ensure fairness and tax efficiency.

3. Include Compliance and Change of Partnership Details
Incorporate provisions for compliance with securities and partnership laws, admission of new partners, transfer restrictions, and procedures for adding or removing partners. Add a mechanism for amending the agreement and designate a dissolution or wind-down process.