Partnerships are probably the most common business structure within the farming industry. In a partnership, you share ownership with one or more people and run a business together with a view to making a profit. It is a popular, and relatively simple and flexible way to run a farming business. You need to bear in mind that, as a partner, you have no protection if the business runs into trouble. And in business as in life, you can’t always see eye to eye with others, which is why your interests need to be protected by a well drafted partnership agreement. We will make sure this key document reflects both yours and your partners' wishes and the nature and needs of your business.
You may not want to expose yourself to unlimited liability, and so perhaps a limited liability partnership (LLP) is a more appropriate structure for you. It has the benefit of being flexible, like a traditional farming partnership, but with the added advantage of reducing your financial responsibility as a partner. You may have noticed the recent LLP conversion trend, and in fact, our firm, Withy King, is now a limited liability partnership.
Our agriculture and rural business team can provide detailed guidance to highlight the advantages and risks associated with the type of partnership you prefer. We’ll tailor the partnership agreement to meet your personal needs and those of your farming business going forward.