Being in partnership can be a great way to do business: the pooling of capital, talent, skill and common purpose to drive a business to success.
However, as with the best of relationships, things can go wrong. Trust can evaporate as differences in personalities emerge. Ethics, business direction, control issues, underperformance and money woes can dominate partnership meetings, instead of the wellbeing and growth of the business.
Before setting up or entering into a partnership, take advice from a specialist solicitor.
Their role is to protect your interests and ensure you have a clear picture of your responsibilities, management, expectation and risk. Establishing your legal status can help avoid pitfalls later. Factors such as capital input, profit share and management powers are all relevant in determining whether you are a true partner or…