When you make the decision to form a company, there are a number of choices you have to make. However, one of the most important of these choices is whether you should form your company alone or go into partnership with others. It is this decision that the success and future growth of the business is contingent. If you are consider forming a business partnership with a colleague or friend, there are a number of legal issues and implications which you need to address before you begin to trade.
One of the many reasons why people begin the company formation process is to become their own boss. However, with this independence comes great personal and financial responsibility. In a business partnership, though full control is relinquished, financial responsibility is shared. A partner or partner could also inject fresh capital, along with different skills and ideas, all of which could facilitate business growth and expansion.
Should you decide to embark on a business partnership, there are still decisions to be made. Namely, if you should you go for a limited or ordinary partnership – the relative value in both of these options will be considered in another post. However, crucially at this stage, you need to establish how you wish to integrate the partnership model into your business, and consider the following:
-A partner and partners’ relative ability to progress the business
-The various skills and abilities they will bring to the business
-A partner and partners’ previous experience .