A limited partnership includes: one or more persons called general partners, who are liable for all debts and obligations of the firm; and one or more persons called limited partners, who contribute a sum or sums of money as capital, or property valued at a stated amount. Limited partners are not liable for the debts and obligations of the firm beyond the amount contributed. A legal body (e.g. company) or an individual may be a [...]

The idea is that an LLP should provide many of the benefits of limited liability, as for a company, but allow its members the flexibility of organising their internal structure as a traditional partnership. The LLP is a legal entity separate from its members, but, unlike an incorporated company, does not have shares or shareholders and is not subject to the same provisions as an incorporated company concerning the relationship between it, its shareholders and [...]

‘Copyright Telegraph.co.uk’ Pre-nuptial agreements were given significant recognition in English law for the first time yesterday after a wealthy German heiress won a landmark legal battle with her former husband. Three Appeal Court judges ruled that the assets of Katrin Radmacher – a paper industry heiress said to be worth £100 million – should be protected from her French ex-husband because of the pre-nuptial contract they signed before they married. In yesterday’s landmark ruling, Mr [...]

A few days ago we were discussing limited partnerships and the important of having a deed of partnership in place. Well, what if you want to set up a Limited Liability Partnership? An LLP is a relatively new concept (we are talking years!) and restricts the liability of the partners even more so than a regular limited partnership. It acts more like a company in that it is the LLP itself – not the individual [...]

About to form a partnership? Here a quick ‘how to’ guide. Partners in a business share in both the responsibilities of running the business and the profits or losses that it makes. However, precise rights and responsibilities depend on: the type of partner what the partnership agreement says There are three broad types of partner: • General partners General partners invest in the business, take part in running it and share in its profits. Each [...]

You may be in a business partnership and not know – because under English law, a partnership agreement is two or more people acting together in business to make a profit. Here are the ground rules to safeguard your cash and assets in the event of something going wrong: 1. Work out a written partnership agreement so everyone knows where they stand over control of the business, money and debts. You can download excellent template [...]