A Partnership Amendment is used when two or more partners want to make changes to their Partnership Agreement. Partners can be individuals, corporations, Limited Liability Companies (LLCs), or other general partnerships.
Some examples of reasons to amend your Partnership agreement could be:
- A new person or entity enters into the partnership
- An existing partner leaves the business
- The company adapts new accounting policies
- There are changes in the capital contributions by one or more partners
- Profit and loss distribution changes
The amendment is attached to the Partnership Agreement to reflect the changes that the partners agreed upon. A Partnership Agreement may be amended in accordance with the terms of that agreement.