Limited Liability Partnerships provide many benefits, such as internal flexibility within the LLP and a decreased risk to the personal wealth of each member.
However, as with a general partnership, without a properly drafted LLP agreement in place there is a real risk that things could go wrong further down the line. Should you run into problems in your LLP and there is no LLP agreement to refer to, you will have to abide by the laws set out in the Limited Liabilities Partnership Act 2000, and this may not be to the satisfaction of all parties.
Furthermore, this Act may not deal with all the situations that might be relevant to your organisation, and a LLP agreement is your chance to ensure everyone is aware of exactly what will happen under any circumstance. For example, you may wish to put your own measures in place for when one of the members wishes to leave the business, such as what will happen to their assets.
Some of the most important aspects of your LLP that can be covered by a LLP agreement include:
- LLP name
- LLP duration
- Initial contributions
- Profit and loss division
- Management structure
- Restrictive covenants
Get help with your LLP agreement from Ralli Solicitors
The team of partnership law solicitors at Ralli has vast experience of helping a range of different organisations formulate their agreements, from LLPs to general partnerships.
Our partnership law experts can help you ensure all the key areas are covered and that all of your designated members are happy with the final version. We can cater for the individual requirements of any organisation, so get in touch with our team on 0161 832 6131 to see how we could help draft an agreement for your organisation.