Becoming a partner: understand legal partnership better with MHA MacIntyre Hudson's explainer
Congratulations on your admission to partnership. If you have not already, get ready to receive your P45; it’s probably the only time in your career when promotion results in the termination of employment!
Becoming a partner shouldn’t be the pinnacle of your career aspirations; it is the start of the next chapter of your professional life. Are you fully prepared for the additional responsibilities, liabilities and reduced statutory rights? The potential for reward is far greater, but so are the risks and it is important you are fully prepared.
As a shareholder, stakeholder and business owner, your day to day life will focus on a unique blend of professional expertise, employer responsibilities, business development acumen and entrepreneurial spirit.
- Understand what you are signing up for and the financial implications
- Know your legal and financial responsibilities
- Keep good records from the start to ease future compliance
- Plan for the future and protect your assets from the outset
- Ensure you focus on maintaining a good work, life balance
- Get good advice from your peers and from professional advisors
Types of structure
From the outset, make sure you fully understand how your firm is structured.
In a traditional firm, partners are jointly liable for losses, but even with the protections afforded to an LLP partner or a limited company shareholder, you could still be liable for any of your mistakes not covered by your Professional Indemnity (PI) insurance.
Download the full Roadmap to your Financial Future guide from MacIntyre Hudson's website.