When entering into a business partnership, there are a number of important considerations to take into account regarding the liability of a partner.
One option is setting up a limited partnership. A limited partnership can ensure that certain partners in the partnership are protected from any misconduct by their fellow partners. A limited partnership contains general and limited partners, with this having a significant impact on the liability of a partner.
A general partner is responsible for the affairs of the business, including liability for any debts or obligations. This means their liability is not limited to their own personal contributions. Meanwhile, a limited partner contributes capital to the business, with no input in to the running of the business or any responsibilities other than the financial support they provide. In cases such as this, a partnership agreement is highly important to ensure that the status of each partner is clear.
How can a partnership agreement help?
A partnership agreement provides guidance on the responsibilities of each partner, helping to ensure that partners are aware of their own potential liabilities as part of the partnership. This avoids any potentially damaging disputes from emerging, as the liability of a partner is clearly stated in an easy to understand and pre-agreed manner.
Expert advice on liability of a partner
Ralli Partnership Law can provide guidance on a full range of partnership issues. To get in touch, call free on 0161 832 6131, or use the contact section on the website to arrange a callback at a more convenient time.
Our team are greatly experienced, and can ensure that the liability of a partner within your partnership is clearly stated. We can also help to produce a bespoke partnership agreement, covering the most important topics within your partnership and covering potential causes of partnership dispute, whatever the levels of liability. Your business deserves the best possible chance of success, which can be provided by the team at Ralli Partnership Law.