Partnership Agreements

A Clear Understanding From Day One

Going into business with someone is a major commitment. Whether you’re setting up a new partnership or formalising an existing one, a well-drafted Partnership Agreement is essential.

It sets the tone for how the business will be run, what’s expected of each partner and how challenges will be handled.

If you operate a partnership but do not have a Partnership Agreement, the way that your partnership will be regulated falls back on the provisions of the Partnership Act 1890, a piece of law that is over 100 years old. This can mean that your partnership may be on a fragile footing and these provisions may not be suitable for you and your situation.

At Hopkins Solicitors, we help you get these conversations right from the start. We’ll work with you to build a bespoke agreement that reflects your shared understanding – protecting the business and your relationship as partners.

What’s Involved

Our service is tailored to your specific circumstances, and usually includes:

• An initial consultation – this is to understand the nature of the partnership, the individuals involved and the commercial goals.
• Drafting or reviewing a Partnership Agreement – this should address roles and responsibilities, decision-making, profit shares, capital contributions, retirement, exit provisions and dispute resolution.
• Interaction with other legal or regulatory requirements – such as your business structure, regulatory licences or tax planning.
• Consideration of future scenarios – so your agreement works not only for today but as your business evolves.

At an early stage, it is important to involve your accountants – and we can then work closely to ensure that any commercial or tax considerations are properly factored in. We’ll help make sure everyone is on the same page before issues arise.

Things to Consider

It’s worth thinking about:

• Roles and responsibilities: Who will be responsible for what?
• What happens if a partner wants to leave or can no longer contribute? Planning for change now protects everyone later.
• Are contributions equal? If not, how should this be reflected in decision-making or profit shares?
• What if partners disagree? A good agreement provides a fair, practical way to resolve disputes without damaging the business.
• Do you have a fallback position? Without a written agreement, you risk falling back on default legal provisions that may not suit your situation.

Let’s get started

Please get in touch with a member of our team – we’ll be happy to talk through your plans and explain how we can help.

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