Farming Partnerships Solicitors, Malton, York & Wetherby
With any business, having the right legal structure in place to allow it to grow and develop is essential; and farming is no different.
For those seeking to operate as a partnership, is vital that a valid agreement is in place to afford clarity and security going forward. The farming and agriculture solicitors at Pearsons & Wardare excellently placed to offer legal support and guidance concerning your farming partnership. Speak with one of our friendly and approachable solicitors today.
We can provide clear, straightforward advice on matters such as:
- Preparing partnership contracts for farm businesses
- Making adjustments to partnership contracts to reflect changes in circumstances – e.g. when one partner wishes to retire
- Making changes to profit share and capital ratios
- Drafting dissolution agreements for partnerships and limited partnerships
- Tax planning
- Succession planning – drafting and reviewing Wills for rural business partners
How does a farming partnership operate?
If two or more people join together to carry on a business together, one of the legal structures they can use to do this is a partnership. Operating as a partnership means that a particular set of legal rules will apply to the business. The relationship will be regulated by legislation, and the partners will have unlimited liability for debts accrued by the business.
To govern how the partnership will operate, an agreement can be drawn up that sets out essential details about how the business will be run. This includes information about how much money each partner will put in, how assets of the partnership will be owned, and how profits and losses will be shared. A partnership agreement will also offer clarity if disputes arise between the partners and allow the farm to continue operating while matters are being settled.
What matters should be covered by the partnership agreement?
A partnership agreement should be drawn up to reflect the specific needs of the business. However, it is good practice for a farming partnership agreement to cover:
This applies to property such as land and equipment, but also to interest in the capital of the farming partnership. It might make sense to transfer ownership of certain property to the partnership, but not for others.
Bringing the partnership to an end
A partnership can last for a fixed period or continue in perpetuity. Some partnerships will end when one partner gives notice, but others will continue if the other partners wish to do so.
The agreement should set out how critical decisions are made and what should happen if partners disagree. This may include provisions for expelling partners.
Contact our Farming Partnerships Solicitors in Yorkshire
Having over 200 years of experience as a practising firm in Yorkshire, we know the local area and its agricultural community well. For comprehensive advice on all matters concerning farming partnerships, speak with one of our locally based solicitors today on 01653 692247 (Malton) or 01904 716000 (York) or 01937 583210 (Wetherby), or complete our online enquiry form.