Setting Up A Partnership
Whether your business is already up and running, and you think it’s time to formalise things, or you want to set up a partnership before you start trading, it’s important to get it right.
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We can advise whether you are better off with a straightforward agreement, or a Limited Liability Partnership, and get everything in place for you.
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The advantage of a partnership agreement is that it provides clarity. Of course, you’re likely to be going into partnership with someone you trust; maybe even a friend. But are you really clear about who is going to be responsible for what?
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A good agreement stops arguments from cropping up, by pre-empting the sorts of issues that can cause bad feeling, like these -
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The aims of the business
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How much money will each partner put in? And how much will they get back when the partnership is dissolved?
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Who will do what work?
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How will the profits be shared, and when, and how much?
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What decisions can be made by one partner, and which ones require them all to agree?
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How will new partners be brought in, or existing ones leave?
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What mechanism will there be for resolving disputes?
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FAQs
Q: What is a partnership agreement and why is it important?
A: A partnership agreement sets out the rights, responsibilities, and profit shares of each partner. Without one, you’re subject to generic default rules that may not reflect your intentions—and disputes can become costly.
Q: Can we create a flexible partnership structure?
A: Yes. We can help you create a bespoke arrangement that reflects how you really want to work together, including unequal profit shares, decision-making protocols, and exit clauses