How much will a partnership agreement cost

bargainaddict

Hi, my hubby is about to go into business with 4 other colleagues as a driving school.

We are really keen to get a partnership agreement set up and wondered if anyone could advise whether to use one of the many templates from the nternet or to go to the solicitor. We are thinking that the solicitor is better and more watertight but we have no idea of the cost. What would the average cost of one drawn up by a solicitor be?

The other guys don't seem to be too worried about getting it done but my OH doesn't want to join anyhting until this is drawn up. Also, any experiences how long it takes.

The guys will be trading under 1 name and the only joint money is what will go ino the advertising fund every month. They will all be responsible for their own teaching diary and finances etc.

thanks in advance

Mark7799

It's a bit of a 'how long is a piece of string' question. It depends upon how complicated the agreement is and what's the going rate for solicitors in your area. Try Lawyers for B usiness http://www.lawsociety.org.uk/choosingandusing/helpyourbusiness/foryourbusiness.law to find a local solicitor whp specialises in business law - most will offer a free 30-minute consultation and can give an indication of fees then. The Business Link website http://www.businesslink.gov.uk/bdotg/action/detail?r.s=sl&type=RESOURCES&itemId=1073789512 offers good advice on what to put into a deed .

fguk

I got an agreement, but with just two partners, from my £160 an hour lawyer.

Cost about £8-900, but that included some Terms & Conditions and setup advice as well.

joggyb

Hi bargainaddict

Your husband is right to tread carefully, and to insist an agreement is in place. I come across businesses all the time that have started on a 'trust' basis, only for issues to arise, or people to fall out, a few months down the line. Sorting out problems when there isn't a formal agreement in place is just messy, and can so easily be avoided.

Worse, where partnerships are concerned - if there isn't a formal agreement in place, then the Partnerships Act 1890 will automatically kick in to any arrangements your husband has with his partners (which covers e.g. profit-sharing), especially if they decide to break up the partnership at any point. And that may leave him with outcomes he certainly doesn't want!

I'd also recommend steering clear of template agreements. Unless you're familar with the law, the chances are you won't know how to amend them properly, and you may also get a document which has a whole number of provisions that you don't even need. Better to get a bespoke agreement that covers what you need it to cover.

I can certainly draft something for your husband at less than the rates already quoted in the posts so far. If you or he would like to discuss it further, please don't hesitate to PM me.

Good luck!