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Adding a partner via sweat equity can be incredibly useful for some businesses, but it isnโt necessarily a good fit for everyone. Read our article for the pros, cons, how to create. There can be a separate document or a sweat equity agreement that can be included in the articles of incorporation, llc operating agreement, or partnership agreement. Sweat equity agreements are commonly used in startups to compensate for the lack of funds to hire employees. Startups rely heavily on the skills and efforts of their founders,.