How do you arrange Partnership Agreements?
I've obtained a client who has no Partnership agreement in place. As a tax avoidance measure, with some good commercial reasoning to boot, it has been proposed to admit several long-term employees into Partnership.
The current Partnership has no agreement. The intention is to have a two tiered system whereby the current Partners are "Senior" and entitled to a higher profit share than the new "Standard" Partners. It is also intended to have allotted "Salary" rates for each Partner based on hours work with residual profits in a profit share arrangement.
The Senior Partners have power to vote (jointly) to remove any Standard Partner.
My first suggestion was to use a law firm so as to absolve us of responsibility.
I guess I have two questions:
- Does anyone else generate Partnership agreements in-house without a qualified Solicitor?
- What would be your expectation of costs to implement the above agreement using a Solicitor?
I have no issue drafting it personally. However my only concerns are whether I can provide "due care and attention" without the legal basis and what our insurers may think!
- Put fees on website 110 4
- Mobile phone and P11D 1,185 4
- Director resignation 36 1
- I'm thinking of moving to Ireland 205 3
- effective advertising 49 1
- Sigma Red 1,312 3
- CIS Software Recommendations 326 5
- VAT on medical/care services? 59 2
- Definition of "relative" in benefits code 139 2
- Live Chat on Accountancy Website 427 6
- Should we let the Client Call the Shots? 444 7
- Nominal Code for Car lease? 129 6
- VAT Variation Team 181 3
- Cloud Based Software recommendations please 71 1
- Sage help please 291 4
- charges for storing documents 190 1
- Share scheme annual returns problem 71 1
- VAT in Eu 65 1
- Sage opening balance / retained profit nightmare! 126 2
- minimum shareholding 89 1
- Straight line write off of Purchase Goodwill ??? 473
- Has anyone been affected by the RBS payment breakdown? 457
- WIP Software 328
- No payroll scheme in place 279
- Is there anything wrong with this? 249
- Do subcontractors on work for residential (student accomodation) construction 243
- Small Part Disposal of Property 224
- Uncommercial property business 216
- Apple Employees - RSU vesting and tax witheld 187
- SA Penalty 179