You may have a business partner, but does that mean you share the risks and rewards appropriately?
If there is any more than one person in a business, a solid legal structure is required.
What is needed is a formal agreement that governs not only how the partnership runs and develops, but also how it ends.
There are many people involved in partnerships who have not formalised their relationship in this way. They may think their informal partnership is covered by statute. However, any such loose arrangement offers very little protection indeed to those wanting to end the relationship.
Given that for every person thinking of starting a partnership, there is probably someone thinking of dissolving one, a firm agreement is worth its weight in gold.
For More Information
For general advice in relation to partnership agreements, please call 0208 864 0722 to get in touch with Richard Hornby or e-mail him: