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Build the relationship on more than a handshake

A business partnership can operate informally for years, but uncertainty becomes expensive when profits, responsibilities or future plans change. Whether you are forming a traditional partnership or an LLP, the agreement should reflect how the business will really work. We help partners establish clear rights, responsibilities and exit arrangements from the beginning.

From offices across Devon, CWC advises partnerships and LLPs throughout the South West, from professional practices to family and owner-managed businesses.

Know what happens when circumstances change

Partnership agreements should deal with more than profit shares. Partners need to know who owns the assets, how decisions are made, what each person must contribute and what happens on illness, retirement, death or disagreement. Without agreed terms, statutory default rules may apply and the business may be exposed to disruption at the point when certainty matters most.

How we can

help you

We advise on choosing between a partnership, LLP and company, then prepare or update partnership agreements and LLP members’ agreements. We cover capital, drawings, profit shares, management, authority, duties, new partners, retirement, compulsory exit, valuation, restrictive covenants, succession, deadlock and dissolution, alongside related property, employment and commercial arrangements.

Why choose CWC Solicitors

Partnerships combine business, financial and personal relationships, which makes generic drafting particularly risky. We take time to understand how the partners work together and what each person is contributing. Our advice is direct and practical, with documents designed to guide everyday decisions as well as protect the business when a partner leaves or the relationship breaks down.

Frequently asked questions

Still unsure or need something explained in more detail? Contact us, and we’ll guide you through it.

The right structure depends on liability, ownership, management, tax, funding and how profits will be taken. A traditional partnership does not provide the same liability protection as an LLP or limited company. Legal advice should be considered alongside tax and accountancy advice before the structure is chosen.

The partnership may be governed by statutory default rules that do not reflect what the partners intended. Those rules can affect profit sharing, decision-making, entitlement to remuneration and how the partnership ends. A written agreement allows the partners to replace or supplement the defaults with arrangements suited to the business.

They commonly cover capital and asset ownership, profit shares, drawings, roles, decision-making, authority, working commitments, new partners, retirement, illness, death, expulsion, valuation, restrictive covenants, dispute resolution and dissolution. The provisions should match the structure and the practical way the business operates.

An LLP is a separate legal entity that can own assets, enter contracts and continue despite changes in membership. Its members usually have limited liability, subject to the law and any personal commitments they give. A traditional partnership is not generally separate from its partners in the same way.

Yes. The existing agreement should set out the approval process, required capital contribution, profit entitlement and any conditions of admission. A deed of adherence or updated agreement may be needed, together with filings for an LLP and changes to banking, property or regulatory arrangements.

The agreement should explain whether the business continues, how the departing partner’s interest is valued and paid, and what happens to assets, clients and ongoing liabilities. Insurance, succession and tax planning may also be relevant. Without clear terms, the event can create financial pressure and uncertainty for everyone involved.

Only where the agreement or applicable law permits it and the correct procedure is followed. Grounds may include serious misconduct, persistent breach, incapacity or loss of a required professional status. Expulsion provisions should be carefully drafted because an invalid attempt can lead to a substantial dispute.

The agreement may require internal escalation, mediation, expert determination, arbitration or court proceedings. The best route depends on whether the partners want to preserve the business relationship, achieve an exit or protect assets urgently. Early advice can prevent one disagreement from paralysing the business.

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