Advantages of General Partnership
Confidentiality is the biggest advantage of a general partnership (i.e. a partnership which is not a limited partnership, or an LLP). There is usually no requirement to publish partnership accounts.
The relationship between the partners is usually set out in a partnership agreement, and subject to that agreement and statute and common law, the partners are comparatively free to run their business as they see fit.
Disadvantages of General Partnership
The partners are personally liable to the creditors of the business. If one partner disappears, the creditors can seek payment of the entire amount owed to them from the remaining partners. All of a partner’s assets can potentially be taken to pay the partnership’s debts.
Furthermore, without formal a partnership agreement in place, a partnership may be terminated immediately by one partner serving notice on the other.
If you would like to discuss your partnership, your partnership agreement or indeed converting your partnership to an LLP or Limited Company, please do not hesitate to contact BakerLaw’s Head of Company and Commercial Jonathan Craig at firstname.lastname@example.org or 01252 730 754