Lee Sharpe looks at some pitfalls of carrying on a business in partnership.
In this article, I’ll be looking at some of the consequences of taking on partnership status. There are different categories of partner and partnership, and the following serves only as a basic introduction.
You can become a partner by accident!
The Partnership Act 1890 defines a partnership as ‘the relation which subsists between persons carrying on a business in common with a view of profit’. There are exceptions to this, but there is no need for a formal arrangement, to give notice or to ask permission.
There may be various reasons why two or more persons acting together may not quite make a partnership, but it is nevertheless relatively easy to achieve – even if you didn’t intend to. Note that agreements setting out to deny