legal - partnership agreements
Setting up a partnership need not be a complicated matter. However, making sure that you have a suitable partnership agreement in place is essential.
A partnership agreement formally sets out the structure of a partnership, how it will be run and the duties and responsibilities of the partners in both general and specific terms. The best time to decide what you will do if the business is not successful is before you start, when you are still friends.
We have extensive experience in negotiating and drafting partnership agreements and our approach is always to ensure that the interests of all parties involved are taken into consideration and fairly represented.
Our special " starting in business together" checklist will help guide you through the process. Our tax specialists ensure that you always end up with the most tax efficient structure for your business. You should always consider whether an LLP would be a better model and whether there should be a company as one member of your partnership.
current issues
The most interesting development is the increase in the number of LLPs being set up with a corporate partner for tax planning reasons.
initial considerations
When forming a partnership and drafting an agreement, decisions need to be taken on how:
- profits/losses will be distributed between the partners;
- decisions will be made and what authority the partners have;
- an existing partner can withdraw or a new partner can be admitted to the partnership;
- management duties within the partnership will be allocated; and
- conflicts or disputes will be dealt with.
international
We have set up LLPs for businesses which will operate overseas.
Care is to be taken with the jurisdiction of partnerships which have a business in more than one jurisdiction.
individuals
As well as preparing an agreement for the partners of a new partnership we can also advise individuals who are considering joining an exisiting partnership to ensure that their wishes are taken into consideration.