When forming a partnership, it is crucial to have a well-documented profit share agreement in place. This agreement outlines how profits will be distributed among partners and serves as a reference in case of any disputes.

A sample profit share agreement typically includes the following key elements:

1. Names of Partners: The agreement should clearly specify the names of all partners involved in the business. This will ensure clarity and avoid confusion in case of any issues in the future.

2. Percentage of Profit Share: The profit share of each partner should also be clearly mentioned in the agreement. This percentage should be agreed upon by all partners and should reflect each partner`s contribution to the business.

3. Profit Distribution Schedule: The agreement should specify how often profits will be distributed among partners. This could be monthly, quarterly, or annually.

4. Calculation of Profits: The agreement should specify how profits will be calculated. This could be based on net profits or gross profits, after deducting expenses.

5. Dispute Resolution: The agreement should outline the process for dispute resolution among partners. This could include mediation or arbitration.

6. Termination of Partnership: The agreement should specify the terms and conditions for the termination of partnership. This could include giving notice, dividing assets, and settling debts.

To ensure that your profit share agreement is legally binding and enforceable, it is necessary to consult with an attorney. An attorney can help you draft a comprehensive agreement that covers all necessary provisions and protects the rights and interests of all partners involved.

Having a well-documented profit share agreement in place can help avoid potential conflicts and disputes between partners. It provides clarity and transparency in the distribution of profits, which can go a long way in maintaining the smooth functioning of a partnership.