Partnerships and LLPs solicitors
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Contact our teamOur expert team of partnership solicitors are here to guide you through the process of setting up a partnership or limited liability partnership (LLP), ensuring that you have a solid foundation for your business to thrive.
With the tailored advice and support of our partnership solicitors, you can be confident that your partnership or LLP is structured in a way that meets your specific needs and goals.
- There are different types of business partnerships, from simple agreements to the more formal LLP.
- It’s important you understand their advantages and disadvantages, and which is best suited to your business.
- We’ll discuss your circumstances and advise on the best route for you.
- We can set up a partnership, advise on an existing agreement, resolve a partnership dispute and support you with any other aspect of partnership agreements.
What is a partnership?
A partnership is a type of business structure in which two or more individuals come together to own and operate a business. Partnerships can be established for a specific project or for an indefinite period of time, and partners typically share profits and losses in accordance with their agreement.
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Partnership agreements
A PA is a fundamental legal contract between parties who wish to jointly manage and operate a business. It sets out the rights, responsibilities, and expectations of each partner, covering key aspects such as capital contributions, distribution of profits, decision-making processes, and the process for resolving disputes. Crafting a detailed PA is crucial for avoiding misunderstandings and ensuring the business operates efficiently.
Unlimited Partnership
In an Unlimited Partnership, two or more individuals simply come together to form a business. The accounting and tax aspects are relatively straightforward, but each partner will be personally liable if the business incurs debts.
To overcome this last drawback, there’s an alternative: the LLP (Limited Liability Partnership). The LLP is a corporate body with its own identity, separate from the individual members. The LLP itself is liable for debts incurred in running the business, giving individual members more protection from liability than in an Unlimited Partnership. In both versions, individuals’ income from the business is treated as personal income, which is taxed at the appropriate rate.
Although it has the advantage of helping protect you from business debt, there are also disadvantages to an LLP. It’s more complex, and has to be set up with formal legal documents and registered at Companies House.
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We’ll discuss your business circumstances and advise you on which type of partnership is most suitable for you (or whether it would be better to set up a limited company). We can help with any aspect of partnership agreements, including:
- explaining your responsibilities in the different types of partnership
- setting up new agreements or advising on existing agreements
- appropriate notice periods when partners want to retire
- including arrangements to force a partner to leave if necessary
- resolving disputes between partners.
Sometimes we are asked to help when one partner does not want to be responsible for another partner’s debt, which they are not protected from under conventional partnership law. We can draft partnership agreements to include protection for individual partners.
You can be reassured by our experience and reputation for giving sound, helpful advice on partnerships and LLPs. You can trust us to listen and understand what matters most to you and your business, and respond with a pragmatic, personal service that’s tailored around your specific commercial needs.
Why choose our partnership solicitors?
Here at Moore Barlow our partnership solicitors have extensive experience in advising businesses on partnerships and LLPs. We provide tailored solutions to meet the specific needs of each client, ensuring that their interests are protected and their objectives are achieved. With a focus on practical and commercial advice, our solicitors are committed to delivering a high-quality service that adds value to our clients’ businesses. Choose our partnership solicitors for expert advice and support throughout the partnership lifecycle.
How can our partnership solicitors help?
Our partnership solicitors can provide expert legal advice and guidance to help you navigate the complexities of partnerships and LLPs. We can assist with everything from formation and structuring to dissolution and dispute resolution. Our team has extensive experience working with a wide range of businesses, from small startups to large multinational corporations. Let us help you protect your interests and achieve your goals.
We have offices in London, Richmond, Southampton, Guildford, Lymington and Woking and offer specialist corporate legal services to clients nationwide.
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Frequently asked questions
What is an LLP?
An LLP, or Limited Liability Partnership, is a legal business structure that combines elements of a partnership and a corporation. It offers limited liability protection for its partners, meaning they are not personally responsible for the LLP’s debts or liabilities.
What does LLP stand for?
LLP stands for Limited Liability Partnership.
How does LLP work?
LLP (Limited Liability Partnership) is a type of business structure where the owners have limited personal liability for the company’s debts and obligations. It combines the benefits of a partnership (flexibility and tax advantages) with limited liability protection for the owners.
What is an LLP agreement?
An LLP agreement is a legal document that outlines the rights and obligations of the partners in a limited liability partnership (LLP), including profit sharing, decision-making, and other important aspects of running the business.
How does a company partnership work?
A company partnership is a legal agreement between two or more individuals or entities to jointly conduct a business. The partners contribute capital, share profits and losses, and have joint decision-making authority as agreed upon in the partnership agreement.
How to structure a partnership
A partnership can be structured by clearly outlining the roles, responsibilities, and decision-making authority of each partner. It is important to create a partnership agreement that includes provisions for profit-sharing, dispute resolution, and termination terms to ensure a successful and legally binding partnership.
What is a partnership agreement?
A partnership agreement is a legal document that outlines the terms and conditions of the partnership between two or more individuals or entities. It specifies the roles, responsibilities, and rights of each partner and serves as a guide for the operation and management of the partnership.
What are the key legal differences between partnerships and LLPs?
Partnerships do not have limited liability, meaning partners are personally responsible for the company’s debts. LLPs provide limited liability to partners, protecting their personal assets from the company’s debts and liabilities.
Do I need a solicitor to establish a partnership or an LLP?
No, you do not need a solicitor to establish a partnership or a Limited Liability Partnership (LLP). However, it is recommended to seek legal advice to ensure all legal requirements and documentation are properly taken care of.
Why do many solicitors operate in partnerships?
Many solicitors operate in partnerships because it allows them to pool resources, create a shared workload, and share the financial responsibilities and risks associated with running a law firm.
Can you help us to draft partnership or LLP agreements?
Yes, I can assist in drafting partnership agreements or LLP agreements to outline the terms of the partnership or LLP in a concise and effective manner.
Do I need a solicitor for a partnership agreement?
It is highly recommended to consult with a solicitor when creating a partnership agreement. They can provide legal advice, ensure the agreement is comprehensive and enforceable, and help protect the interests of all parties involved.
What legal liability differences should I be aware of for partnerships vs LLPs?
Partnerships do not provide limited liability protection, so partners are personally liable for the debts and liabilities of the business. LLPs, on the other hand, offer limited liability protection where partners are not personally responsible for the debts and obligations of the LLP.
What is the difference between LLP and partnership?
LLP (Limited Liability Partnership) is a type of partnership where partners have limited liability, protecting their personal assets, while in a general partnership, partners have unlimited liability and are personally responsible for the debts and obligations of the business.
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