A partnership is defined legally as an association of two or more persons who operate as co-owners and share profits. Entering into a partnership can be a very exciting adventure but it also has its own challenges and if the partnership is not properly structured from formation may have a negative impact on the parties in terms of liabilities. We focus on helping its clients properly structure all types of partnerships ranging from general partnerships and limited liability partnerships (“LLPs”) to ensure the partners are properly protected from liability and that the partnership business will run effectively.
We provide our clients with strategic advice and well-crafted documentation in relation to the following services:
- Legal advisory on formation of a partnership;
- Structuring of partnerships both general partnerships and limited liability partnerships;
- Drafting or reviewing of partnership deeds for both general partnerships and limited liability partnerships;
- Drafting or reviewing of service agreements for managers of the partnerships;
- Legal advisory on dissolution of a partnership;
- Confidentiality agreements; and
- Contractors agreements.
Important Things to Know about Partnerships
- Partnership: A partnership is an association of two or more persons to carry out a business and share profits.
- Types of Partnerships: There are two types of partnerships general partnerships and limited liability partnerships. The liabilities of a general partnership are unlimited, while in a limited liability partnership, the liabilities are limited to the shares of the partners in the partnership.
- Governing Document: Partnerships are governed by a partnership deed. The partnership deed sets out the duties and responsibilities of the partners, the profit or loss sharing mechanism and other operational requirements of the partnership. A partnership deed is required to be registered.
- Company and Limited Liability Partnership: Both a limited liability partnership and a limited liability company are legal persons, with limited liabilities and perpetual succession. The key difference between a limited liability partnership and a limited liability company is that in company corporate tax is payable while in a limited liability partnership the partners pay tax from their profits.
