A partnership generally provides no asset protection when you enter into it personally. This means that your personal assets may be available to repay any business debts. Whether this is an acceptable risk for you and your family estate will depend on your individual circumstances, the size of your personal estate, and the way that your current personal assets are owned, and protected in their own right.

For example, if your personal assets are protected through a family trust structure, your potential liability may not be as significant as in the event they were owned in your own name.

Alternatively, if you enter into a partnership as a trust or individual, you may achieve greater protection of your personal assets.

As a company is a separate legal entity, it can enter into a partnership agreement. If you operate a separate business as a company, then you may form a partnership which comprises some individual members, and some companies. If the partnership is litigated against, or incurs any debt which cannot be repaid by other partners,  then it is your company and its assets which will be vulnerable, rather than you personally.

Setting up a partnership in this way can be more complex than with a group of individuals entering into a partnership personally, and legal advice should be sought.

If you do intend to enter into a partnership as an individual, there are still some options for decreasing your personal liability. For example, you might be able to obtain insurances for the partnership which should cover any claims that may arise against the business, particularly if running a business that provides services or products to consumers, or interacts with the public in a way that may increase risk of claims being made against the partnership.