If you have recently been offered equity partnership by your firm, congratulations. But before you sign that partnership agreement, here are some questions you might want to ask.
Documents
Start with a copy of the up-to-date partnership agreement. If there is none, your firm may be dissolved at any time by an aggrieved partner.
Ask for the current and last years’ management accounts, the budgets for the coming year and a calculation of partners’ drawings and profit shares. They will help you check the firm’s performance and query any serious income shortfalls and significant liabilities.
