Partnerships

If your business is a partnership, or if you are considering setting up a business in partnership, there are many issues you will need to consider. Not only should you take early legal advice, but you should also seek the advice of an accountant, as a partnership may not be the most tax efficient vehicle for operating your business.

At Wilson Browne we have many years of experience in advising on partnership matters - and we are a partnership ourselves!

You should ensure you have a formal Partnership Deed reflecting the terms you have agreed - if you do not, then in the case of any dispute in the future you may discover that the way the law deals with the partnership is very different from what you had intended. Lack of a Partnership Deed may mean that in a dispute situation the partnership is dissolved or you may be unable to get rid of a partner without court action

There are many issues to consider at the outset, including who the partners are, what shares they have, what the partnership business is, how capital contributions are made and reflected and how profits (and losses) are shared. Even the name and address of the partnership needs to be considered and other provisions such as holiday entitlement, retirement regimes and removal of partners should all be set out.

Taking advice at the outset is crucial. As the partnership develops it important to keep the Partnership Deed under review as it may become out of date, for example when new partners are taken on or where the business diversifies or shares alter.

During the course of the running of the business problems can develop between partners. Our experienced commercial litigation team are on hand to advise partners on partnership disputes.

For further information please contact John Saynor