Partnership Business Structure
A partnership is a business structure generally made up of between two and 20 individuals or entities in business together.
Partnerships are comprised of 3 main forms:
Incorporated Limited Partnerships
It is important to note that each type has various levels of liability for each partner.
The most common form of a partnership is a General Partnership; where all partners are equally responsible for the management of the business, and each has unlimited liability for the debts and obligations, they distribute the income and losses between the partners and are bound by each other’s conduct.
Similar to the sole trader business structure, partnerships can be quite inexpensive to set up and operate; however, valuable Partnership Agreements which explicitly lay down the rules under which the partnership will operate and eventually dissolve, can be complex and require specialist advice.
A written agreement it is not mandatory, however dependent on your circumstances, we strongly recommend seeking legal advice to affirm the suitability of contractual agreements within your individual circumstance. The benefits of our multifaceted legal and accounting team, extend to helping you achieve success within the parameters of your partnership and ensuring you are compliant with all relevant tax obligations.
For direct and succinct advice, contact our local professionals today for a free 30-minute consult to review your business’ structure.