Do we need a written partnership agreement?
If you're in business with a partner the simple answer is YES.
Without a written partnership agreement, if you run a business in a partnership with another (i.e. you are carrying on a business in common with a view of profit), you'll be relying on default provisions in legislation to govern the running of the partnership and the relationship between the partners.
Whether you're in a partnership with members of your family or non-relatives, it's in everybodyís best interest to have a written partnership agreement.
Preparing for everything
If you have no written partnership agreement and the parties have not agreed otherwise, if one of you dies the partnership will automatically dissolve.
If you join an existing partnership and you allow the partnership to use your property to [letís say] run the partnership business from, your property will become that partnershipís asset.
If you're in a partnership but you're not equal partners, unless there is something agreed to the contrary, you are all entitled to share the losses, but also the profits equally.
We can help you to draft a partnership agreement or if you are already in a partnership and need advice on partnership matters, we can assist you.
This article is for general information purposes only. It does not constitute technical, financial, legal advice or any other type of professional advice and is no substitute for specific advice based on your individual circumstances. We do not accept responsibility or liability for any actions taken based on the information in this article. For more information, please click here.