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.
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:
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.