Partnerships and LLPs

If you have a partnership you will be governed by the Partnership Act 1890 (as amended) unless you have a written partnership agreement which overrides the default position. Within ordinary partnerships, you possess no limited liability which consequently puts your personal assets at risk.

A limited liability partnership (LLP) gives you a vehicle with limited liability to trade with third parties but its members are still treated as individuals for tax purposes.

You need to think about how the business is to be managed, what you expect from different partners and what happens if someone wants to leave, dies or you wish to expel someone. You could end up in a costly dispute without a written partnership/LLP agreement.

Partnership or LLP

Make sure you are comfortable with the risk and liability of opting for a partnership or an LLP – we can advise on the pros and cons.

We are often asked to:

advise on the implications of the Partnership Act 1890;
draft or review partnership agreements;
incorporate LLPs;
draft or review LLP agreements;
convert a business or ordinary partnership into an LLP;
draft cross-option provisions to apply in the event of death and/or critical illness.

Why choose Furley Page for advice on partnerships and LLPs

We have an experienced team used to assessing what partners are trying to achieve. With a key focus on clarity and coherence, we provide cost-effective, clear advice and draft jargon-free documents. Our attitude is that prevention is always better than cure and importantly, it also works out cheaper for our clients.