AI Partnership Agreement Generator

Agree the hard parts while you still get along

Two people start a business. The work splits itself naturally, the money is thin enough that nobody argues about it, and writing anything down feels unnecessary — almost rude.

 

Eighteen months later one of them wants to raise money and the other wants to stay independent. One has been working sixty-hour weeks; the other has a second job. Nobody wrote down what happens now, so it becomes a negotiation between two people who are already frustrated with each other.

 

Describe your partnership — who is involved, who contributes what, how profits split and what happens if someone leaves. Indigo AI drafts a complete partnership agreement for your country and in your language.

 

Create My Partnership Agreement Free →

 

⚡ Drafted in about 60 seconds · 🤝 Two or more partners · 🌍 Jurisdiction specific · 📄 PDF download

 

What a partnership agreement prevents

Without a written agreement, your partnership is governed by whatever default partnership law applies where you are. Those defaults are rarely what people expect.

 

In many jurisdictions the default position is that profits split equally regardless of what each partner contributed. That every partner has equal authority to bind the business, including to contracts and debts the others never agreed to. That a partner can walk away and force the partnership to dissolve. That a deceased partner’s share passes to their estate — which may mean you are suddenly in business with someone’s spouse.

 

None of that is unreasonable as a fallback. It is simply not what most partners would have chosen if anyone had asked.

 

A written agreement lets you answer four questions before they become expensive.

 

Who owns what? Ownership percentage, and whether it reflects capital, work, or something else.

 

Who decides what? Day-to-day authority versus decisions requiring unanimous consent — taking on debt, hiring, signing a lease, changing the business direction.

 

How does money move? Profit split, draws, salaries, reinvestment, and what happens when the business needs more capital than it has.

 

How does someone leave? Voluntary exit, death, incapacity, or removal for cause. How the departing share is valued, and who has the right to buy it.

 

That last one is the clause nobody wants to write and everybody eventually needs.

 

Why use an AI partnership agreement generator

It asks about the things partners avoid discussing. Deadlock resolution, exit valuation, what happens if one partner stops contributing. A generated draft puts these on the table as normal business terms rather than accusations.

 

It matches your structure. A general partnership, an LLP, a joint venture for one project, or a founders’ agreement between startup co-founders are structurally different documents. Describe yours and the draft is shaped accordingly.

 

It is drafted for your jurisdiction. Partnership law, registration requirements and liability treatment vary significantly by country and state. You select yours before the AI drafts.

 

It handles unequal contributions properly. Partnerships rarely start equal — one person puts in capital, another puts in time, a third brings clients. A written agreement can reflect that; the legal default usually cannot.

 

Free to start. New accounts include credits. A medium-length agreement uses 2 credits; a longer one covering multiple partners, capital accounts and exit mechanics uses 3. No subscription — credit packages start at $5 for 50 credits.

 

How it works

Step 1 — Choose how you want to start

 

Type it, dictate it with the microphone, or upload an existing agreement or term sheet as a PDF or image. Uploaded files are deleted automatically after processing.

 

Step 2 — Select Business & Corporate, then your jurisdiction

 

Choose the category, then your country, state and language.

 

Step 3 — Describe the partnership

 

Plain language works:

 

Partnership agreement between three partners for a digital marketing agency in Bengaluru. Partner A contributes ₹10,00,000 capital and works part-time; Partners B and C work full-time with no capital. Profit split 40/30/30. Decisions over ₹2,00,000 require unanimous consent; day-to-day decisions by majority. A partner may exit with six months’ notice, with their share valued at two times average annual profit. Remaining partners have first right to buy. Governed by Indian law.

 

Step 4 — Review and adjust

 

Your draft arrives in about a minute. Change the profit split, add a vesting schedule, adjust the valuation formula, insert a non-compete — every clause is editable.

 

Step 5 — Download and sign

 

Download the PDF and collect signatures through IndigoESign free.

 

What your partnership agreement includes

• Partners, business name and purpose — who is in, and what the business does
• Commencement and duration — start date, and whether the partnership is fixed-term or ongoing
• Capital contributions — cash, assets, property or services from each partner, and how they are recorded
• Capital accounts — how contributions and withdrawals are tracked over time
• Ownership percentages — which need not match capital contributed
• Profit and loss allocation — the split, and the timing of distributions
• Partner draws and salaries — whether partners take a regular amount before profit share
• Roles and responsibilities — what each partner is accountable for
• Decision-making authority — which decisions are day-to-day, which need majority, and which need unanimity
• Banking and financial controls — signing authority and expenditure limits
• Books, records and accounting — who maintains them and each partner’s right of access
• Admission of new partners — the process and consent required
• Withdrawal of a partner — notice, and the consequences
• Death, incapacity or bankruptcy of a partner — what happens to their interest
• Buy-sell provisions — how a departing share is valued and who may purchase it
• Non-compete and non-solicitation — where enforceable in your jurisdiction
• Confidentiality — protecting business information during and after the partnership
• Deadlock resolution — the mechanism when partners cannot agree
• Dissolution and winding up — how assets and liabilities are settled if the partnership ends
• Dispute resolution and governing law
• Signature blocks, with witness lines where required

 

Example: what a generated agreement looks like

Prompt entered:

 

Founders agreement for two co-founders of a SaaS startup in Delaware. Equal 50/50 equity with four-year vesting and a one-year cliff. Founder A is CEO and handles fundraising and sales; Founder B is CTO and owns product and engineering. All IP assigned to the company. Unanimous consent required for raising capital, issuing equity, or selling the company. If a founder leaves before vesting completes, unvested shares return to the company. Twelve-month non-compete after departure.

 

What Indigo AI returns:

 

A founders’ agreement naming both parties with equal initial equity, subject to a four-year vesting schedule with a twelve-month cliff and monthly vesting thereafter. Role definitions set out CEO and CTO responsibilities with an explicit statement of decision authority within each domain. An IP assignment clause transfers all work product, code and materials to the company. Reserved matters requiring unanimous consent are listed, covering fundraising, equity issuance, sale of the company and material changes to the business. Departure provisions distinguish good leaver and bad leaver outcomes, with unvested shares returning to the company pool. A twelve-month non-compete and non-solicit follow, scoped by geography and activity. Confidentiality, deadlock resolution by mediation, and Delaware governing law close the document, followed by signature blocks.

 

Roughly 2,300 words. Generated in about a minute. Editable throughout.

 

Who uses this

Startup co-founders who need equity, vesting and IP settled before a single investor asks about it — and they will ask, in the first meeting.

 

Two-person service businesses — agencies, studios, practices, consultancies — where the work split is obvious but the money split has never been written down.

 

Family businesses where informality runs deepest and disputes run hardest.

 

Joint ventures formed for a single project, where a defined end date and asset split matter more than long-term governance.

 

Existing partnerships operating without paperwork, which is more common than most people admit. It is never too late to document what you have already agreed.

 

Mistakes worth avoiding

Splitting equity equally by default. Equal splits are fine when contributions genuinely are equal. When they are not, an equal split builds resentment into the foundation of the business.

 

No vesting. A co-founder who leaves after four months should not keep half the company. Vesting is standard, expected by investors, and protects everyone including the founder who stays.

 

No exit valuation method. Agreeing that a departing partner is “bought out fairly” means agreeing to argue later. Set a formula — a multiple of profit, an independent valuation, or a fixed method.

 

No deadlock mechanism. In a two-partner business with equal votes, a disagreement can freeze the company entirely. Name a tiebreaker, a mediator, or a buy-sell trigger.

 

Skipping IP assignment. If the code, designs or brand belong to individuals rather than the business, any future investment or sale becomes complicated in a way that is expensive to fix.

 

Never signing it. A partnership agreement that sat in draft for two years protects nobody.

 

Signing one you have not read. If a partner hands you an agreement, run it through the AI Document Analyzer to see the obligations and exit terms clearly before you commit.

 

Frequently Asked Questions

Is the AI partnership agreement generator free?

 You can start free with the credits included on new accounts. A medium-length agreement uses 2 credits and a longer one uses 3. There is no subscription — credit packages start at $5 for 50 credits.

 

Is an AI-generated partnership agreement legally binding? 

It becomes binding through proper execution by all partners, and enforceability depends on your jurisdiction and the specific terms. IndigoEDocs produces an AI-assisted draft — because partnership agreements govern money, control and exit, we strongly recommend a review by a qualified business lawyer before signing.

 

Can I create an agreement for more than two partners? 

Yes. Name each partner and their contribution, share and role in your prompt, and the agreement is drafted for all of them.

 

What is the difference between a partnership agreement and a founders’ agreement? They overlap heavily. A founders’ agreement is the startup version, usually emphasising equity vesting, IP assignment and roles ahead of investment. A partnership agreement is the broader business version, emphasising profit allocation, capital accounts and dissolution. Describe your situation and the right structure is drafted.

 

Can I include equity vesting? 

Yes. Specify the vesting period and cliff — for example four years with a one-year cliff — and the schedule is drafted in.

 

Does it cover what happens if a partner dies or leaves? 

Yes. Withdrawal, death, incapacity and removal provisions are included, along with buy-sell terms setting out how the departing share is valued and who may purchase it.

 

Do I need to register my partnership? 

That depends on your jurisdiction and structure. Some places require registration for a partnership firm or LLP; others recognise general partnerships without it. Check the requirement locally.

 

Can I add a non-compete clause? 

Yes, and its enforceability depends on your jurisdiction. Narrow, specific restrictions limited by time and geography hold up far better than broad ones.

 

How do all the partners sign it? 

Download the PDF and send it through IndigoESign for free electronic signature by every partner.

 

Related documents

• Partnership Agreement — manual form builder version
• AI NDA Generator — protect the conversation before the partnership exists
• Non-Compete Agreement — a standalone restriction
• Independent Contractor Agreement — for contributors who are not partners
• AI Employment Contract Generator — for your first hires
• AI Privacy Policy Generator — for the business website
• Loan Agreement — where a partner lends rather than contributes capital
• Purchase Agreement — for asset transfers into the business

 

Have the difficult conversation on paper

Every partnership dispute was avoidable at the start. This takes about a minute.

 

Create My Partnership Agreement Free →

 

New accounts start with free credits · No subscription · View pricing

 

Please note: IndigoEDocs produces AI-assisted drafts. Partnership agreements govern ownership, liability and exit — please have your final agreement confirmed by a qualified business lawyer or your relevant legal authority before all partners sign.