Creating Partnerships and Trusts in Adelaide
Bartley Partners specialises in the creation of business partnerships for Adelaide corporate entities, trusts and individuals. Partnerships can be the perfect solution for many situations, even though everyone’s business and personal needs differ. Let Bartley Partners help you to explore your options.
A partnership is when two or more entities operate a business as co-owners and share income. All co-owners (i.e., partners) act on behalf of each other in the business.
This can be done with either a partnership of corporate entities (companies), a partnership of trusts, or a partnership of individuals. A partnership of individuals is rarely ever an advisable structure due to the unlimited liability between the partners. However, a partnership of trusts with corporate trustees in place can be a very powerful business structure.
Advantages of partnerships
- Partnerships combine the resources and expertise of a number of people.
- Partnerships are simple to administer.
- Profits and losses are shared between partners according
to his/her share, as specified in the ‘partnership agreement’.
Disadvantages of partnerships
- All partners together are personally responsible for business debts.
- Each partner is individually liable for debts incurred by the other partners.
This is known as being ‘jointly and severally’ liable. (i.e. unlimited liability) - All partners have a right to participate in the management of the partnership
(unless otherwise agreed). - Partners cannot transfer their ownership to someone outside the partnership
unless the other partner(s) agree. - Personal differences may interfere with business.