Most partnership disputes are really deed failures — situations the document never addressed. A good deed is boring precisely because it decided everything in advance.
The clauses that do the heavy lifting
- Capital and future contributions: who brings what, and what happens when more is needed
- Profit sharing vs work sharing: ratios, and whether working partners earn remuneration first
- Remuneration and interest: spelled out in terms the tax law recognises — deductibility depends on the deed
- Decision rights: what needs unanimity vs majority; deadlock resolution
- Banking and borrowing powers: who can bind the firm and to what limit
- Exit, retirement and death: valuation method, payout timeline, non-compete expectations
- Admission of new partners and dispute resolution (arbitration beats litigation)
The tax angle most deeds miss
Partner remuneration and interest are deductible only when the deed authorises them explicitly. Vague deeds cost real tax every year.
Review, then re-review
Deeds should evolve when partners join or exit, when capital changes and when the law changes — an outdated deed can be worse than none.
We draft and review deeds with the tax lens on — business startup services · get yours checked.
