The decision to do business with a partner is an extremely important decision. Here are some tips for getting closer and creating your partnership agreement. Not all companies make a profit every year, especially when they are just starting out. The partnership agreement should also specify the annual amount of each partner`s loss of business to be absorbed. In most cases, it is illegal to allocate more losses to partners who did not initially invest in the business and losses (such as profits) should be determined by the percentage invested by each partner. Partnerships can be complex depending on the scale of the activity and the number of partners involved. To reduce the potential for complexity or conflict between partners within this type of business structure, it is necessary to establish a partnership contract. .