McKenzie Law advises partnerships in relation to their constitution and partnership law and we prepare draft partnership agreements and partnership dissolution deeds. We advise many different types of businesses and a good number of prominent local and regional professional practices.
We understand that although a partnership agreement is important, most business owners want to concentrate on doing what they do best and making money. Whether you are documenting your business relationship for the first time or are looking to update your partnership agreement because of changing circumstances, we will meet with you so you can tell us your plans and we will then advise you on the best way to implement and document them.
There is always a balance to be struck between brevity on the one hand and setting out in the partnership agreement as much detail as possible to avoid future misunderstandings. We use our experience to advise you where the balance should be struck. Do not fall into the trap of permanently having the partnership agreement as an agenda item in monthly meetings but never signing it.
Have you considered limiting any uninsured exposure to third parties by becoming a limited liability partnership (LLP) or a limited company.
Like limited companies, LLP status will greatly reduce the partners (or strictly speaking “members”) possible exposure to personal liability.
Personal liability can then only be incurred in exceptional cases such as criminal activity, wrongful trading or where individual members of an LLP have not made it clear that they are acting on behalf of the LLP.
In contrast to the traditional “unlimited” liability partnership model, limited liability status will attract prospective members and their funders.
Sole traders and traditional partnerships can transfer their business or practice to a limited company if that is preferred.
If you would like advice on partnership agreements or converting to an LLP or limited company then please contact us. We will work with you and your accountant so that you get the right legal and tax advice.