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In this video, Matthew demonstrates how to create a partnership agreement using legal templates. Viewers are directed to a link for legal templates in the video description. He instructs on navigating to the business forms section and selecting the partnership agreement, which is the fifth option. After choosing the state (Texas), Matthew explains that users can proceed with either an individual or entity document. He outlines the process of entering details for the first and second partners, including names and addresses, emphasizing that if there is no new partner, one should refrain from adding additional entries.