Our commercial solicitors are experienced in handling many businesses which trade as partnerships, from mechanical engineering businesses to dentists.
What is a partnership?
Partnerships are by their very nature personal to the individual partners. Partners share profits and gains and raise money against their own assets. All loans to the business are in the personal names of the partners. If you require any legal advice on how being a partner of a business could affect you, please give us a call.
Whilst a partnership is simple to set up as there is no obligation to register with a central body (other than HMRC), a partner is personally liable. This means that any creditors of the business can claim against a partner’s assets and each partner is jointly and severally liable for all the debts of the partnership. The liability of a partner is therefore unlimited.
Legal advice on partnerships
As the main bulk of legislation governing partnerships dates back to 1890, over a 120 years ago, it is strongly advisable to take legal advice and ask our partnership solicitors to prepare and advise on a Partnership Agreement.