Starting a Business as a Partnership

Question 1

Starting a Business as a Partnership

How is Tax Admin Organised?

1

Answer 1

1 x nominated partner registers the partnership and submits return for whole business.

Individual partners then register for self-assessment.

Question 2

Starting a Business as a Partnership

How can a Partnership Agreement (unvaried) be Dissolved?

2 (written agreement and deed)

As per s26

Answer 2

Can be dissolved by oral notice unless a Deed which requires written notice

Question 3

Starting a Business as a Partnership

What level of agreement is required to vary a Parttnership Agreement? (unamended)

1

Answer 3

Unanimous/agreement from all

Question 4

Starting a Business as a Partnership

What happens to a partnership that is deemed illegal?

1 as per s34

Answer 4

automatically dissolved

Question 5

Starting a Business as a Partnership

What accounting transparency is required from a Partnership?

2

Answer 5

No legal requirement for partnerships to prepare accounts in any format or make them publicly available

Question 6

Starting a Business as a Partnership

What is he requirement to disclose partners names and other information?

2

Answer 6

Name and address of each partner on all business docs and displayed prominently in any business premises which can be accessed by customers or suppliers

Question 7

Starting a Business as a Partnership

Provisions of s26 PA 1890 Partnership at Will

3

If there is no fixed term…

Answer 7

1. Can be dissolved at any time by any partner giving notice
2. The notice can be oral (unless its a partnership deed)
3. The notice takes immediate effect

Question 8

Starting a Business as a Partnership

Moss v Elphick

1

Answer 8

Any reference to a fixed term at all will override s26 partnership at will provision

Even “by mutual agreement”

Question 9

Starting a Business as a Partnership

s32 PA 1890 Specified (Duration or Venture)

What does it say?

1

Answer 9

Any partnership continues until duration expires or for single venture, when the venture is complete

Overrides s26

Question 10

Starting a Business as a Partnership

s33 PA 1890 says

(death or bankruptcy)

1

Answer 10

Partnership dissolves automatically upon death or bankruptcy of any partner

Question 11

Starting a Business as a Partnership

s20 PA 1890

What does it say (partnership property)

1

Answer 11

Anything acquired for the purpose of the partnership is Partnership Property (owned by all the partners together)

Unless evidence to the contrary

Question 12

Starting a Business as a Partnership

What agreement to transfer benefit AND burden of an agreement?

When transferring from ST to Partnership

Answer 12

Novation Agreement

Question 13

Starting a Business as a Partnership

As per PA 1890 how is capital contribution split between partnes if no express agreement

1

Answer 13

Equally

Question 14

Starting a Business as a Partnership

Income Profits

1

Answer 14

Profits from day to day trading

Question 15

Starting a Business as a Partnership

Capital Profits

1

Answer 15

Profits from capital assets and not the usual course of business e.g. selling an office building

PA 1890 doesn’t distinguish between the two

Question 16

Starting a Business as a Partnership

As per 1890 what level of agreement is required to bring in new partner?

1

Answer 16

Unanimous/agreement by all

Question 17

Starting a Business as a Partnership

As per PA 1890 what level of agreement is required to change the nature of the business?

1

Answer 17

Unanimous/agreement by all

Question 18

Starting a Business as a Partnership

As per PA 1890 what level of agreement is required re: “ordinary matters connected with partnership business”?

1

Answer 18

Simple majority

Question 19

Starting a Business as a Partnership

What does PA 1890 (unvaried) say about expulsion of partners?

1

Answer 19

They cannot be expelled

Question 20

1

(liability)