Why would an LLP have a partnership agreement?

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Greetings, I’m trying to decide whether or not my LLP (or future LLP, even) would need or not need a partnership agreement. What are the actual benefits, can you tell me? Thanks a lot, I appreciate your input, all.

Answers

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LLPs generally have partnership agreements to protect the rights and interests of members, outline their duties and set out the rules and regulations for running the business. There is no legal requirement to have one but it is strongly recommended.

Without an agreement, the LLP will be governed alone by the Limited Liability Partnership Regulations 2001 which are rather basic and not suitable for all LLPs.

A partnership agreement is a private document so you can create one yourself with the other members but, ideally, you should ask a solicitor to do this for you to ensure it is current and effective. There is no need to provide a copy for Companies House but each LLP member must be given a copy.

a year ago
 

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