At London-based Adam Bernard Solicitors, we understand that business partnerships can optimize your business’ performance. However, without set terms, the relationship could become complicated and strained which could have negative effects on your business. A Partnership Agreement is a contract between parties in a commercial partnership which aims to mitigate these potential problems.
There are some key differences between a business partnership and a limited company. A limited company is a more complex structure than a straightforward partnership. They are typically run by shareholders and directors. The directors typically handle the day-to-day running of the business, and shareholders hold the financial responsibility. On the other hand, within business partnerships, the partners more straightforwardly share joint responsibility for the losses and profits of the business, as well as the running of it.
