Contract Agreement Partnership

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    In addition to decision-making procedures, a partnership agreement should contain instructions for resolving disputes between partners. This objective is usually achieved through a mediation clause in the agreement, which aims to provide a means of settling disputes between partners without the need for judicial intervention. Any agreement between individuals, friends or families to start a business with profit creates a partnership. In the absence of a formal registration process, a written partnership agreement clearly indicates the intention to create a partnership. It also defines in writing the basis of the partnership. Federal tax audit rules allow the Internal Revenue Service (IRS) to treat partnerships as subject entities and review them at the partnership level, rather than conducting individual audits of partners. This means that, depending on the size and structure of the partnership, it is possible for the IRS to audit the partnership as a whole instead of auditing each partner individually. . . .