Lawyers are not technically obligated to write a partnership agreement, but they can be extremely helpful. Within Australia, partnership agreements are governed by both the Partnership Act (1963) and the Corporations Act (2001) and must comply with different national rules. Hiring a lawyer to help you write your document ensures that it stays within the law and creates a comprehensive agreement for the company. If you prefer to write the document yourself, be sure to use a legal model based on your government laws. Free workout videos, frees and more information models – Models Nevertheless, a partnership is a cheap and convenient way for many people to get into business together, and is a popular business structure for many Australians. And an important step in the creation of the partnership is to record in writing the agreement between the partners using this partnership agreement. Sign up for free business partnership training and understand the topics you need to discuss and document with your partners. If you sign up (and if you already have a company name or ABN), you can receive the partnership model and course for free! Compared to a business or a treuhand, a partnership may have lower installation and administration costs. Businesses and trusts certainly offer some protection of liability, but not a partnership. A partnership is not a separate unit from the partners.
If the company assumes liability, the partners are personally responsible. In addition, a partner may be held liable for the debt incurred by another partner in the name of the partnership. These provisions may not correspond to any modern partnership, so it is essential to define the rules of your partnership through a written agreement. The LawDepot questionnaire addresses each of the issues mentioned above, allowing you to tailor your agreement to your specific partnership needs. Don`t fall for the “We`re friends – we don`t need a contract” line. It`s your life, it`s your money – protect it. Remember, it`s business — it involves personal relationships, but it`s a business, and there are things to do.