Partnership Agreements

In its simplest terms a partnership is defined as 2 or more people coming together in business to make a profit (or loss). Many people work in partnership therefore without realising the formality of this business structure or with anything in writing which can lead to future difficulties.
A partnership agreement allows you to structure your relationship with your partners in a way that suits your business. You and your partners can establish the shares of profits (or losses) each partner will take, the responsibilities of each partner, what will happen to the business if a partner leaves and other important guidelines.

Eventually, you may want to expand the business and bring in new partners. Agreeing on a procedure for admitting new partners will make things a lot easier when this issue arises. 

At least as important as the rules for admitting new partners to the business are the rules for handling the departure of a partner and such provisions should be incorporated into any partnership agreement.

If you and your partners become deadlocked on an issue there should be a way in which to resolve this efficiently and swiftly.  It is then crucial that a partnership agreement provides for alternative dispute resolution, such as mediation or arbitration.

We are experienced in providing comprehensive advice and assistance in respect of all areas of partnership law including formation, dissolution and winding-up. We also work closely with accountants to ensure you receive appropriate tax advice and provide ongoing support for you business.