In most cases, business partnerships are intentionally formed when two or more individuals, companies, or trusts agree to share profits and losses. Partnerships are commonly formed by written agreement but may also be made unintentionally when parties are in business together.
While everyone involved in a business partnership doesn’t need to have roles in running the business, all partners share the responsibilities, benefits, and risks involved in running the business. When partnerships are in writing, a partnership agreement helps to avoid disputes between business partners and aligns the operations of the business.
Business partnerships in Australia are governed by State legislation and each state has their own nuances. In Queensland the relevant Act is the Partnership Act 1891.
If you have a business partnership interstate it is important to consider that the legislation is different in each state. You should ensure that your business partnership agreements accurately reflect this.
It is important to be aware of your company’s legal status because, while partners share in a business’s profits, they are also jointly and severally liable for its debts, including taxation. If you are in a business arrangement involving profit or loss sharing, it is crucial to understand the legal implications. You could potentially be held liable for the entire partnership debt.
Seeking advice is essential for understanding your rights, obligations, and making informed decisions about the business whilst assessing risks and exposure.
Our business partnership lawyers can advise you on the nature of your relationship with another business, and recommend the necessary strategies and documents to protect your interests.
We provide clients with advice before, during, and after forming a business partnership.
We strongly recommend that all businesses operating as a partnership have a carefully prepared partnership agreement. A partnership agreement is crucial to accurately set out the ways the partners interact and how the business operates.
In our experience, the absence of a partnership agreement, or a poorly prepared agreement, is one of the most common causes for partnership disputes between partners.
A partnership agreement sets out the rights and responsibilities of each party in the business partnership. A partnership agreement will address the rights and responsibilities of each of the parties in a partnership.
Our commercial lawyers will help you to carefully consider important issues before starting your business. This process eliminates uncertainty and establishes the roles each party will play in the business.
Some matters that a well-drafted partnership agreement will address include:
Our experienced business partnership agreement lawyers can assist you in drafting, negotiation or reviewing a partnership agreement. We know that no two businesses are the same. A well-drafted and properly considered partnership agreement may prevent costly disputes later.
Business partners often need advice whilst actively managing their business. Seeking expert legal advice on issues before they escalate is key to understanding your options. Our lawyers can provide advice on a range of business disputes, helping you to make informed and commercially sound decisions.
It’s crucial to know your responsibilities and handle the exit of a partner or the dissolution of a business partnership properly.
If a partner is exiting the business or there is a buy out the remaining partners will need to ensure that any transition of ownership is handled carefully. Changes in the ownership can be disruptive to a business. Having clarity on the legal aspects and well drafted termination agreements will ensure a smoother transition and limit the scope of issues.
Any partners exiting a partnership business should have a clear understanding of their ongoing obligations, fiduciary duties and any exposure.
If there is a dispute between the business partners, we can advise on a range of options you have in resolving partnership disputes.
Our partnership dispute lawyers can frequently negotiate issues and defend or assert your interests. It is advisable to consult with a litigation lawyer at the early stages of a problem. Typically, there are more options and opportunities for reaching an agreement through negotiation or alternative methods. Ignoring issues can often necessitate more drastic action, leading to greater stress and uncertainty in your situation.
Seeking the advice of a lawyer proactively can help you negotiate a settlement faster whether it is with representation or not. Our business lawyers and litigation lawyers both have extensive experience in negotiating a range of partnership disputes effectively.
At PCL Lawyers, we recognise that no two businesses are built the same. That’s why our partnership lawyers deliver focused and tailored advice to suit your business goals.
We are a law firm that focusses on providing our clients with concise legal advice and commercial understanding. We work with our clients to find the most effective solutions and ensure their commercial endeavours are as productive as possible.
We have offices located in Brisbane, Melbourne and Sydney and offer a range of legal support for individuals, businesses, and organisations.
Speak to one of our business partnership lawyers on 1300 794 559 or fill out the enquiry form and we will respond promptly.
Our Brisbane Lawyers will provide you with expert legal advice as well as practical solutions. Our law firm has extensive experience in guiding client through their matter addressing commercial considerations and real-life situations and resolving issues quickly.Request a meeting
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