Partnerships
Choosing how to structure your business is one of the first big decisions you’ll make, and one of the harder ones to change once you are up and running. A limited company is often the default, but a partnership or an LLP can be the better fit, particularly for professional practices, smaller businesses and start-ups where the tax treatment or the flexibility works in your favour.
There are traditionally three types of partnership:
- A general partnership
- A limited liability partnership (LLP)
- A limited partnership
The difference between them mostly comes down to liability, and which one suits you depends on how you want to run the business and share profits, and how much personal risk you’re prepared to carry. Whichever route you take, a carefully drafted agreement is what defines each partner’s role and sets out how profits and losses are shared.
The structure you choose shapes how the business runs, and the agreement you put in place decides what happens when things change.
We work with partnerships at every stage. Some clients are going into business together for the first time and want the structure right before they start. Others are established and need to bring in a new member, change how profits are shared, or work out how a partner leaves. And some come to us when a disagreement has already taken hold.
If you’re not sure which of these fits your situation, call us, and we’ll point you in the right direction.
