Partnerships come in all forms – from two individuals starting out in business to very large organisations spanning regional or even national territories. Whatever their nature, a partnership represents a business relationship which, like any other, needs to be thought through carefully and documented.
There is always so much to do when setting up a new venture that this is often overlooked – or the parties may feel anxious about being ‘legalistic’ about a business venture that is founded on trust. But experience shows that having a partnership agreement in place at the very outset can help focus a company’s efforts, as well as avert the worst scenarios should plans not come to fruition or personal differences arise.
With many existing businesses, the relationship may never have been documented; or, where it has, the partnership agreement may not reflect the realities of the day-to-day operation of the business, providing no assistance or guidance if things go wrong or need re-evaluating.
We can guide you towards putting in place a partnership agreement which has as much flexibility as required, while protecting the interests of all concerned. It can include issues such as personal liabilities, mechanisms for the future sale of the business, or exit strategies of the partners.
Limited Liability Partnerships
It has been possible to set up a Limited Liability Partnerships (LLP) since April 2001, giving partners the same benefit of limited liability as applies with most companies. The LLP was introduced as a new form of corporate business vehicle after increased pressure from professional firms, whose partners were finding themselves increasingly exposed to greater levels of personal liability. In addition, the LLP has proved very popular amongst property investors and developers due to the favourable tax treatment applied to LLPs.