Partnership Agreements
Mark S. Elliott has spent 25 years working in various management roles within the tenanted and leased divisions of the UK's largest breweries and pub companies. His extensive knowledge and day-to-day involvement with pubs and publicans make him well qualified to know what is required to run a successful pub. He shares his knowledge and many 'insider tips' with you in this book. Mark is based in Cockermouth, Cumbria.
PARTNERSHIP AGREEMENTS
Partnerships should have a written agreement drawn up that gives details of how the partnership will work. This is just as important in the case of married couples and family partnerships, as it is with any other form of partnership. The partnership agreement will include:
- how much money is to be invested by each partner;
- how profits will be shared;
- how much time each partner is to contribute;
- what spending limits apply;
- what process needs to be followed if partners want, or need to reduce their involvement in the business.
A solicitor will prepare the agreement for partners to sign.
Tax and National Insurance
Partners are self-employed and will be taxed on their share of any profits. Each pays fixed rate Class 2 National Insurance contributions and Class 4 contributions on their share of the profits.
