Partnership agreements

At Lawrence Grant we can advise people in the Harrow area on formal partnership agreements. Here are some of the key issues...

People starting up in partnership often ask whether it is really necessary to have a formal partnership agreement. The answer is definitely 'Yes'.

Basically, the agreement should set out the rules governing how the partnership operates, and should cover the main 'What happens if ...' situations.  If there is no agreement, there will be a large element of uncertainty, and applying the underlying law, such as the Partnership Act 1890, may well lead to unwanted results.

It is usually best to have a partnership agreement drawn up by a solicitor, but before you reach that stage you should think about exactly what you want the agreement to cover. In particular, you should consider:

Running the business

  • partners' duties
  • working hours and holidays
  • decision-making procedures
  • business premises
  • cars

Financial matters

  • profit-sharing arrangements, and drawings on account
  • partnership capital (and interest arrangements)
  • banking and financial arrangements
  • accounting arrangements
  • making provision for tax payments

Special circumstances

  • partner retirement procedures
  • death of a partner
  • disability of a partner
  • establishing the right to expel a partner
  • arbitration for unresolved disputes
  • business valuation procedures.

If you are considering forming a new partnership in the Harrow area, Lawrence Grant can help you. Do contact us.

Follow us on Twitter

Sage Logo Xero Logo Receipt-bank.png The Young Harrow Foundation Logo Geneva Group International ICAEW members in Harrow, Middlesex

© 2019 Lawrence Grant. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
+44 (0)20 8861 7575

Quick links

Contact us | Website terms of use | Site map | Accessibility | Disclaimer | Help |

2nd Floor, Hygeia House, 66 College Road, Harrow, Middlesex HA1 1BE

We are a member firm of the Institute of Chartered Accountants of England & Wales (ICAEW). Registered to carry on audit work in the UK and Ireland. Our Insurer is Manchester Underwriting Management, Centennium Court/East St, Chesham HP5 1DG (worldwide, excluding North America). Also an independent member of GGI, a multidisciplinary worldwide association of accountants, tax consultants & solicitors.