Partnership
Partnerships are defined by the Partnership Act of 1890: "The relationship which subsists between persons carrying on a business in common with a view of profit". A partnership is neither incorporated nor registered as a company; generally partnerships consist of ordinary partners who are legally liable for the business.
By starting this type of business you are able to raise capital more freely. The business is not reliant upon one persons skills. The business can use different persons strong points to their advantage. This is applicable to accountants - one may be able to give advice easily, whereas the other member finds he or she is more capable of sorting accounts. These partnerships are most prevalent among the professional industries such as architects, doctors and solicitors.
Partnerships are able to start trading straight away however they may need to wait to get the correct licences. If the partnership is trading under a different name other than that of the partners the organisation must have the names of the partners available to the public; this may mean putting them on documents they must have the name and address at which documents may be served.
Full partnerships have consist of between two and twenty persons but more commonly the amount is under six ordinary partners. They are governed by the Partnership Act of 1890 which ensures that every partner is equally liable for the business even if he or she owns just 1% of the organisation. This is why it is important to set out a Deed of Partnership (partnership agreement) which will outline what each partner has put into the business, what are the responsibilities of each partner and how they will share the profits and losses.
Read more about this topic: Business Ownership Within England And Wales
Famous quotes containing the word partnership:
“Are we bereft of citizenship because we are mothers, wives and daughters of a mighty people? Have women no country—no interests staked in public weal—no liabilities in common peril—no partnership in a nation’s guilt and shame?”
—Angelina Grimké (1805–1879)
“Society is indeed a contract.... It is a partnership in all science; a partnership in all art; a partnership in every virtue, and in all perfection. As the ends of such a partnership cannot be obtained in many generations, it becomes a partnership not only between those who are living, but between those who are living, those who are dead, and those who are to be born.”
—Edmund Burke (1729–1797)
“Nevertheless, no school can work well for children if parents and teachers do not act in partnership on behalf of the children’s best interests. Parents have every right to understand what is happening to their children at school, and teachers have the responsibility to share that information without prejudicial judgment.... Such communication, which can only be in a child’s interest, is not possible without mutual trust between parent and teacher.”
—Dorothy H. Cohen (20th century)