West Perth Legal can assist clients to establish a partnership through a professionally drafted partnership agreement.
What is a Partnership Agreement?
A partnership agreement is an agreement used for the establishment of a partnership. A partnership agreement defines the rights and obligations of the partners, which are subject to the Partnership Act 1895 (WA) and the Limited Partnerships Act 1909 (WA) in the case of a limited partnership.
The formation of a partnership is relatively quick and inexpensive. It allows multiple partners to combine their expertise, resources, and labour for the purpose of a business venture or activity. It should be noted, however, that a partnership is not a separate legal entity and, as such, each partner has unlimited liability for the debts and liabilities of the partnership, including for the actions of all other partners (except for a limited partnership to some extent).
Partnership Agreement Drafting Service
West Perth Legal can draft a partnership agreement to include information such as:
- The business activity and common purpose of the partnership
- The conduct of each partner including obligations such as compliance with specific legislation, licenses, or professional associations rules
- The proportionate ownership of assets between the partners
- The distribution of profit and losses between the partners
- The maintenance of the partnership including financial accounts and tax obligations
- The retirement, removal or addition of a partner
Partnership and Tax
A partner’s share of the partnership income is generally taxed at the personal income tax rates of the partner. Accordingly, profits and losses, or capital gains made by the partnership, can affect a partner’s individual tax return. It is important to have a partnership agreement in place which considers potential tax liability or stamp duty liabilities. As such, we highly recommend that you seek tax advice from a qualified tax accountant in deciding whether a partnership is suitable for you.
West Perth Legal Advantage
West Perth Legal provides regular drafting services on a full range of commercial contracts. Our lawyers have assisted many locals with their legal contract needs. We offer fixed fees for most of our services. Contact us for an obligation free quote.
Perth Commercial Lawyer
We have helped hundreds of clients with their commercial legal needs.
Contact us for an obligation free quote or speak to our Commercial Lawyer for a confidential and complimentary discussion.