Partnership Agreement

Viewing 7 posts - 1 through 7 (of 7 total)

geo
Member
@geo
Join Date: 2003
Post Count: 1,194
March 22, 2004 - 1:54 am
Hi,
I have a business partner that I started this Property Investing with. We’re trying to put an agreement together – I wrote one up that is reasonable.
Steve in his book says that he and Dave have a goal to achieve by May 2004. My partner is saying to me know, “What If one of us leaves the partnership, can we make the company insolvent?” I am sensing that he is not serious anymore becuase he always mentions the issue about leaving the partnership. I am confused about this agreement now. For me, its easy to do (I mean all the info that is) – I just joined with him so can put in 50% of the money so we can buy more properties – yet I do all the investing and research and talking with solicitors, accountants and bankers. Not too sure what to do with this partnership. Any help much appreciated.
And if anyone is starting up in Vic or other states and wants a bus. partner, email me – I’d like to start this up with someone who is enthusiastic about this as I am for the long-term. Thanks.
Kind Regards,
George.
If You never never ask, you’ll never never know”
woodsman
Member
@woodsman
Join Date: 2004
Post Count: 714
March 22, 2004 - 2:51 am
Geo,
I think you might be wise to consider a unit trust for partnership purposes. Makes it easier to manage people entering and leaving the partnership.
Do a search on this forum and http://www.somersoft.com and you will get some good information.
James
geo
Member
@geo
Join Date: 2003
Post Count: 1,194
March 22, 2004 - 3:17 am
Thanks James,
your help is kindly appreciated.
I was just on the phone with the solicitor – he mentioned about a Hybrid or Unit Trust instead of a Discretionary Trust. Thanks again.
Kind Regards,
George.
If You never never ask, you’ll never never know”
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 22, 2004 - 4:49 am
Hi George
You can get a partnership agreement for about $220 at
http://www.lawcentral.com.au
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
geo
Member
@geo
Join Date: 2003
Post Count: 1,194
March 22, 2004 - 10:03 am
thanks again Terry – your a wealth of knowledge.
Kind Regards,
George.
If You never never ask, you’ll never never know”
elves
Member
@elves
Join Date: 2003
Post Count: 507
March 22, 2004 - 10:16 am
George I have been involved in three partnerships, only one had a written partnership and this was ok. I did one only for ATO as a partnership.
The other partnerships were agreed to verbally, and these worked equally well. though for taxation purposes any income earnt was split and we included this on individual tax returns, all legit.
I think for safety having said the above that even if you know people, better to be safe than sorry, make it written, both to agree at the time and have out clauses. People’s lives change and they need to have some movement.
It is hard to find people of like mind and so motivated, but for future reference, and based on your own experience, you know that it can be onesided. I suggest that the goals and plans are written and that each person is allocated tasks, maybe the other person lost interest because you took over? or took control?
Maybe they got bored becuase it got too hard, or because you did all the work and took all the credit and they didnt have a chance?
At the end of the day only you and the partner know what went on, everyone likes to feel they are contributing but you do get those that sit back and do nothing….
cheers
Elves
geo
Member
@geo
Join Date: 2003
Post Count: 1,194
March 22, 2004 - 10:35 am
thanks elves
If You never never ask, you’ll never never know”