Updated Partnership Package
This month Simply-Docs has created a brand new Basic Partnership Agreement. This is a straightforward agreement (just two pages) designed for use where two or three people are setting up in business together as partners, and need an uncomplicated legal document that covers the basics.
The Basic Partnership Agreement assumes that the partners will make equal capital contributions to the business, and will share profits and losses equally. The partners will all work in the business (ie. there will not be any ‘sleeping partners’). The admission of any new partners will require the consent of all the founding partners.
To help you identify and focus on appropriate issues when setting up a partnership, Simply-Docs has also upgraded its Partnership Checklist. This comprehensive list identifies key issues, then refers you to the relevant clauses in both our Basic and Long Partnership Agreements. This can help you decide on the most appropriate partnership agreement for your business.
Lastly, we have introduced a new Comparison Matrix to compare General Partnerships and Limited Liability Partnerships (or LLPs as they are known). The LLP is a relatively new legal vehicle which has some of the benefits of a partnership and some of the benefits of a company; obviously the most important being the extent of a participant’s liability for potential business losses.
These new and updated documents will stand alongside the existing partnership documents, which include a Long Partnership Agreement, a Sale of Partnership Agreement, a Business Transfer Agreement, a Deed of Dissolution and a Joint Venture Agreement. All of these documents (and many others) can be accessed by subscription to the Corporate Folder.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.