Partnership Agreements

If you are already operating a business in a partnership, or you intend to do so it is crucial that the agreement between the business partners is set out in a formal partnership agreement.

Avoid future expensive disputes

Without a partnership agreement in place there is room for confusion and uncertainty as to how the partnership can operate and these are often the key ingredients for expensive disputes and crippling litigation.

Below are some of the issues that need to be considered when you set up a partnership and which should be dealt with in a partnership agreement.

Duration of the partnership

Consideration needs to be given as to whether the partnership should be for a fixed term or for the lifespan of the partners.

Partnership assets

Thought needs to be given as to how those assets used by the partnership are to be treated. Are they to be the property of an individual partner, or are they to be treated as the property of all the partners?

Capital

The partnership agreement should specify how much capital each individual partner is expected to provide for the business initially and in what proportion each particular partner will be expected to contribute towards any additional capital funding requirements.

Profit and losses

What proportion of any profit or loss a particular partner will be entitled to or responsible for.

Relationship between partners

The agreement should deal with the actual authority of any individual partner.

Exit of partners

The agreement should also specify when and if partners are allowed to retire or when they can be expelled and what happens to their share of the partnership in such circumstances.

At Slough Solicitors, we can help you to avoid future partnership disputes and ensure that your partnership agreement is properly recorded.

Our friendly and experienced partnership solicitors can provide advice for:

• Partnership Formation
• Partnership Dissolution
• Partnership Agreements
• Limited Liability Partnerships
• Partnership Disputes
• Partners Duties and Liabilities

For further information about any of our specialist areas or to find out how we may be able to help you, please contact us on 01753 535422 or click here to make an enquiry.