General Business Advice

Partnerships and Limited Liability Partnerships (LLP's)

Generally, two or more individuals conducting business together and sharing the profit are deemed to be carrying on business as a partnership. English law implies many of the obligations and rights partners can expect from one another and many partnerships get along just fine on this basis. However, as with all things in business, what starts as a beautiful relationship can turn sour and if there is no written evidence of the terms of your partnership, you may find that the law works against you.

Partners are personally liable for the debts of the business. A partnership is not a separate legal entity in the same way that a company is, but forming a company is not always the most suitable option.

Limited Liability Partnerships are like a happy medium. The flexibility of a partnership is retained but members (often still referred to in practice as partners) have limited liability. They are still taxed as a partnership but members are not personally liable for its debts.

To discuss the most suitable business model for your business and to set up a partnership, LLP or other company structure, contact our Commercial Team.