---
title: "What Is Partnership agreement? Dental Practice Glossary"
description: "A contract among co-owners that sets how they share profit, make decisions, add or remove partners, and handle an owner's exit."
url: https://joncopeland.multisites.ai/glossary/partnership-agreement
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Ownership and transitions

# Partnership agreement

A contract among co-owners that sets how they share profit, make decisions, add or remove partners, and handle an owner's exit.

A partnership agreement is the written contract among co-owners of a business. The IRS describes a partnership as the relationship between two or more persons who join to carry on a trade or business. The agreement records the terms the co-owners choose.

Typical subjects include profit sharing, decision rights, capital contributions and what happens when an owner leaves. It often works together with a [buy-sell agreement](https://joncopeland.multisites.ai/glossary/buy-sell-agreement), which sets the price and rules for an exit, and with the terms of a [buy-in](https://joncopeland.multisites.ai/glossary/buy-in) when a new owner joins.

Tax and ownership structure differ by entity type and state. Co-owners should work with an attorney and a CPA. This entry defines the term and gives no advice on structure.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Buy-in](https://joncopeland.multisites.ai/glossary/buy-in)
-   [Buy-sell agreement](https://joncopeland.multisites.ai/glossary/buy-sell-agreement)
-   [Practice ownership](https://joncopeland.multisites.ai/glossary/practice-ownership)
-   [Group practice](https://joncopeland.multisites.ai/glossary/group-practice)

## Sources

1.  [IRS, SOI Tax Stats: Partnership study explanation of selected terms](https://www.irs.gov/statistics/soi-tax-stats-partnership-study-explanation-of-selected-terms)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)