| If you are thinking about starting your own | | | | 6. No partner will be paid by default, so partners |
| business, or you are a successful sole trader who | | | | will need to ensure that they do get paid! |
| is looking to expand your business, perhaps you | | | | 7. If a potential partner wants to join the |
| have already thought about a Business Partnership | | | | business, this has to be done with the consent of |
| Agreement. If not, find out more about the | | | | all the existing partners. Nobody can be added to |
| benefits, with this ten point guide. | | | | the partnership if |
| 1. A Business Partnership Agreement is a legally | | | | 8. No changes can be made to the nature of the |
| binding arrangement between at least 2 and no | | | | business without the consent of the existing |
| more than 20 people. | | | | partners. If the business wanted to change from |
| 2. Business Partnership Agreements are | | | | a firm of accountants to dentists, all partners |
| commonly used by people offering professional | | | | would have to agree to this. |
| services such as Doctors, Solicitors and | | | | 9. The company financial accounts and books |
| Accountants. It is not uncommon for partners to | | | | must be held at the main place of business, and all |
| specialise in different areas of their chosen | | | | partners are entitled to see them whenever they |
| profession to broaden the appeal of the business, | | | | want to. |
| and so gain more customers or clients. Two | | | | 10. Any partner can bring the partnership to an |
| solicitors who specialise in family law and business | | | | end by giving notice to the other partners. |
| law might choose to form a partnership, as might | | | | Depending on the type of agreement, this may |
| three accountants who are experienced in book | | | | be the end of the business, or, there may be the |
| keeping, tax advice and financial advice. | | | | option to replace the person who leaves, subject |
| 3. All partners are entitled to an equal share of | | | | to approval by the existing partners. |
| profits, and are also equally liable for any losses | | | | Business Partnership Agreements are a great |
| incurred by the business, no matter which partner | | | | ways to expand your business, and take |
| was responsible for the losses. | | | | advantage of skills and experience that will |
| 4. All partners are entitled to receive payment for | | | | compliment your own in order to provide a better |
| expenses incurred as part of carrying out their | | | | product or service for your customers. |
| job. These can include expenses for car parking | | | | Take the appropriate legal advice and with a |
| and petrol, entertaining clients and hotel | | | | Business Partnership Agreement you can ensure |
| accommodation. | | | | that your business can get off the ground, and |
| 5. Each of the partners can take part in the | | | | continue to expand. Now might be the right time |
| management of the business. This can be useful if | | | | to think about breaking into new markets, or |
| each partner has different areas of expertise, | | | | increasing your customer or client base. See what |
| such as employment law, family law and property | | | | a Business Partnership Agreement could mean to |
| law. Each partner can head up their own team of | | | | you. |
| specialists as required by the business. | | | | |