The TSP Corporate and Commercial team have substantial experience in advising on all aspects of the formation and dissolution of, and exits from, limited liability partnerships and partnership businesses, including the more unusual structure of the corporate partnership. We can advise the partnership or the partners themselves and work closely with their accountants to ensure that tax considerations are reflected in the legal and commercial arrangements put in place.
If you have a business idea and are thinking of going into business, perhaps on your own, or with a close friend or family member, then there are some really important things to think about.
Whilst the business idea itself is an essential element of the success or failure of a business, it is also important for the owners of the business to have in place an appropriate ownership structure and the right agreements between the business owners themselves, and between the business and its staff, customers and suppliers.
Ownership Structure: There are, in general, four possible options to consider when thinking about an ownership structure for your business. These are:
Which one is used will really depend upon the owners’ commercial needs, appetite for risk and their tax position. Getting the structure right at the outset can help to avoid unnecessary costs and administration.
There are fewer formalities for Sole Traders and Partnerships, than for Companies and LLPs. To find out more about each of these options and the differing formalities and administrative burdens that come with them click on each above.
Practicalities of Ownership: As well as considering what structure your new business should have there are a number of other factors you should consider before launching your new business. In particular, you will need to consider:
- Trading terms and conditions
Also, depending on what business sector you are going to operate in, there may be rules and regulations governing that area of business that you will also need to comply with.
You can find out more about the practical issues facing a new business here.
- Advising on the transfer of an LLP member’s share in a professional partnership in tranches over a period of several years including advising on the management of complex capital contribution provisions.
- Advising a professional services firm on the exit arrangements of a number of partners from the partnership.