There are many reasons why a partnership or limited liability partnership (LLP) may be more suitable for your commercial venture than a limited company. Partnerships allow business owners to share profits flexibly, rather than distributing them in proportion to shareholdings. There are also a number of tax benefits that make partnership status more attractive to certain organisations.
Furthermore, the option to form a limited liability partnership gives you some peace of mind that directors of limited companies enjoy. If a challenge arises that means your business cannot pay its debts or liabilities, the partners will not become personally liable.
SA Law provides partnership advice to both traditional and limited liability partnerships. We can help you draw up a suitable partnership agreement, and undertake all legal aspects of formation and registration. If required, we can also help you to convert from one business structure to another.
HOW WE HELP YOU
- First, we can help identify if a partnership is the right structure for your organisation, considering the other options available.
- Once established, we can provide as much or as little advice as required on an ongoing basis. Making us aware of any ultimate ambitions, such as a company sale or merger, will enable us to steer your business towards successful achievement of its ultimate commercial objectives.
IT’S GOOD TO BEAR IN MIND
- Think carefully about the arrangements you would like to make between the partners, and ensure these are reflected in the partnership agreement. If not, any subsequent disputes will be handled under the Partnership Act and Limited Liability Partnership Regulations, which may not reflect your wishes.