We are qualified to assist you in all financial aspects of your business partnership. Our expert knowledge will allow us to guide you through the potential pitfalls of a business partnership.

A business partnership shares control, responsibility and finances between 2 or more people. The partner or partners would take on full liability for any debts incurred by the business and all profits would be shared equally. Ordinary partners also take on equal responsibility and decision-making in the running of the business. There are advantages and disadvantages to entering into a business partnership.

The main business partnership advantages:

• Business partnerships are relatively easy to establish but make sure time is taken in drafting partnership agreements to avoid future problems.
• With more than one owner the ability to raise funds may be increased.
• The business can benefit from using the knowledge base and experience of all of the business partners.
  

The main business partnership disadvantages:

• Business partners are jointly and individually liable: for the actions of the other partners.
• Business partners like sole traders are 100% liable for the actions of the business.
• Since decisions are shared: disagreements can occur, and therefore the decision making process can take longer.

Limited liability partnerships (LLP):

These are partnerships as above, but are registered with Companies House and the LLP enjoys the same Limited Liability status as a Limited company.

LLP's are not a common choice for status, but we can advise on the advantages and disadvantages of this status.