Beware the UBIT--taxes on qualified plan investments can bite.
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Physicians considering partnership agreements should follow a well-designed plan for recruitment, interviewing, and negotiation. This process can ensure future success of the partnership, and prevent legal difficulties.
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Partnership disputes are not uncommon. Settlement in the courts is expensive and may bring unwelcome publicity. Dr Alexander has acted as arbitrator between GPs and commends arbitration as a cheaper, more private, alternative.
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The legal concept of a professional partnership (maatschap) such as it has acquired a place among veterinarians in the Netherlands, was studied. It appears that the validity of the partnership is affected if three essential characteristics have not been included in the partnership agreement. The Civil Code leaves no doubt of that. The professional partnerships agreement is most clearly defined in its limits, where it changes into other forms of business entities. Some of these marginal areas are discussed. The conversion of a professional partnership into a private limited company (BV) does not stand the test of criticism. Naturally, considerable attention has been paid to the dissolution of the professional partnership and the rules concerning a partner giving notice. It appears that the arrangement for continuance plays an important part in these cases. Using these arrangements of continuance is mainly prompted by fiscal motives.
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