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In this tutorial, Matthew explains how to create a partnership agreement using legal templates. He advises viewers to access the legal templates link provided in the video description. Once on the site, users should click on 'business forms' and select 'view all business forms.' He notes that there are numerous options, but the fifth choice is the partnership agreement. Users must select a state, which he sets as Texas, though any state can be chosen. When filling out the document, individuals must provide complete names and addresses for each partner. If the second partner has a different address, it should be entered accordingly. He emphasizes that no new partners can be added without collaboration.