Giving you a
little time for
yourself

Talking Cents

December
November
October
September
August
July
June
May
April
March
February
January

The characteristics of a business partnership, explained by our small business accountants in Zetland

Our small business accountants in Zetland define a partnership as when there are two or more people coming together to form a business with a common view of creating profits. Overall a partnership combines capital, talent and experience, including assets and liabilities. Below our business accountants in Sydney have detailed the characteristics of a partnership and the essential elements involved.

Characteristics of a Partnership
In a partnership, there are a number of characteristics that differentiate it from other business structures. The most recognised characteristics is its ease of formation and unlimited liability of owners. Our small business accountants in Sydney also want to highlight the transferability of ownership, shared profits and no partnership taxation that’s involved when establishing a partnership.

Elements of a Partnership Agreement
In a partnership agreement it is important to define a number of elements to ensure the smooth flowing of the business. Our business accountants have listed some of the important elements below:

• Amount of equity invested by each partner
• Type of business
• How profits and losses will be shared
• Partners’ current and future compensation
• Distribution of assets on dissolution
• Provisions for changes or dissolution of the partnership
• Provision for settlement of disputes

For more information regarding the characteristics of a business partnership, please contact our small business accountants in Zetland.