The Partnership Playbook: Types, Pros, and Pitfalls

Thinking of going into business with a partner? The partnership structure has some key variations in the UK:

Partnership Types:

1. General Partnership: All partners share equally in responsibilities and liabilities.

2. Limited Partnership: Has general partners (management control, personal liability) and limited partners (silent investors).

3. Limited Liability Partnership (LLP): Provides personal asset protection to all partners.

Partnering Perks:

1. Shared workload and complementary skills

2. Relatively easy to set up

3. Access to more capital and resources

4. Flexible profit-sharing arrangements

Potential Pitfalls:

1. Shared liability (especially in General Partnerships)

2. Potential for partner conflicts

3. Complex decision-making

4. Challenges with valuation and exit strategies

To read more about successful partnerships, check out this article we found online👇

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