Many small businesses are partnerships. Yet circumstances and ambitions change, partners fall out or die. Without a good partnership agreement things can get acrimonious. Here’s how to protect yourself from the start.
A partnership is a legal trading entity that is formed automatically when two or more people run a business, possibly sharing the workload and/or investing capital to get things going.
You can also find yourself unwittingly in a partnership if you run a business with somebody but don’t employ them (often the case with husbands and wives).
You don’t need a written agreement to form a partnership but it is wise to have one drawn up and checked by a solicitor.
Choosing your partner
Naturally it is important to choose your partners carefully. But how well do you know them? Will they work as hard as you? Might they run up large bills? Do you have the same long-term goals for the business and your roles in it?
Read more about Making Partnerships Work