Partnership or LLP – which is the right vehicle?
This month we have expanded our range of Partnership & LLP Document Templates as well as broadening the scope of our Partnership & LLP Comparison Matrix to facilitate customers considering the most appropriate vehicle for their business.
Our extended range of Partnership & LLP templates now also includes the following:
• Guidance Notes Partnerships & LLPs – these notes introduce and explain the main legal principles of partnership law relevant for the purposes of starting a business using a partnership or LLP vehicle. They aim to guide the reader in relation to choosing the right business structure for their business and run through the legal issues involved in forming a partnership or LLP.
• Basic LLP Agreement – is derived from the Long Form LLP Agreement but aims to provide a simple and short legal document which covers the key issues arising in a straightforward LLP arrangement. This template might be used by a small business (or professional services firm) requiring a simple LLP structure.
• LLP Checklist – this checklist covers a range of straightforward questions to enable the reader to focus on the key legal and commercial issues that need to be considered when setting up an LLP, including capital contributions, drawings, profit and loss share, banking, insurance, holidays and management of the business.
• Transfer of Business by Partnership to LLP – this new template compliments our Transfer of Business by Partnership to Company Agreement but instead applies to the transfer of the partnership business as a going concern to a (newly formed) LLP (rather than to a company), where the partners convert to a limited liability partnership and intend to carry on their business through this going forward.
The Partnership & LLP Comparison Matrix has been updated and improved to include more detail on legal status, liability and management as well as adding new sections to cover how each business vehicle signs contracts and which types of businesses are most suitable for each vehicle.
Our extended range of Partnership & LLP templates now also includes the following:
• Guidance Notes Partnerships & LLPs – these notes introduce and explain the main legal principles of partnership law relevant for the purposes of starting a business using a partnership or LLP vehicle. They aim to guide the reader in relation to choosing the right business structure for their business and run through the legal issues involved in forming a partnership or LLP.
• Basic LLP Agreement – is derived from the Long Form LLP Agreement but aims to provide a simple and short legal document which covers the key issues arising in a straightforward LLP arrangement. This template might be used by a small business (or professional services firm) requiring a simple LLP structure.
• LLP Checklist – this checklist covers a range of straightforward questions to enable the reader to focus on the key legal and commercial issues that need to be considered when setting up an LLP, including capital contributions, drawings, profit and loss share, banking, insurance, holidays and management of the business.
• Transfer of Business by Partnership to LLP – this new template compliments our Transfer of Business by Partnership to Company Agreement but instead applies to the transfer of the partnership business as a going concern to a (newly formed) LLP (rather than to a company), where the partners convert to a limited liability partnership and intend to carry on their business through this going forward.
The Partnership & LLP Comparison Matrix has been updated and improved to include more detail on legal status, liability and management as well as adding new sections to cover how each business vehicle signs contracts and which types of businesses are most suitable for each vehicle.
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.