The partners in a partnership are liable for the firm’s debts in proportion to their share in its capital. For example, in a partnership consisting of two partners who each hold one half of the firm’s assets, each partner will be liable for one half the liabilities. Therefore, there must be complete trust not only among the partners but also between the partners and the firm’s manager(s), who must be chosen wisely. The advantage is that when several partners join forces, they are able to undertake projects that would have been impossible for one person acting alone. By purchasing a building as an SCI made up of numerous partners, buyers can avoid the instability inherent in simple joint ownership. However, bear in mind that the building belongs to the partnership and not to its partners, who merely own shares in the partnership. There is consequently less freedom in decision-making. The partners must be able to reach consensus in order to make decisions; indeed, the most important decisions will require unanimity. Lasting disagreements among the partners may paralyse the firm’s operations and prove detrimental to the interests of all parties. So long as these constraints are borne in mind, partnerships can be an effective tool for asset management. Children and parents can be included in a real estate acquisition (such as the purchase of a second home or vacation home). Later on, the parents’ share of the property can be gradually transferred to children or grandchildren in small increments, with a tax burden that is spread out over time. Some tax advisors suggest that an SCI is an effective way to reduce your tax liability. That isn’t entirely accurate, although in certain circumstances the acquisition, construction or sale of a building can be conducted more efficiently by an SCI from a legal, financial and tax standpoint. Tell your notaire about your plans. Only a comprehensive analysis of your specific circumstances can determine whether a partnership is appropriate for you. You should never enter into a partnership without taking certain precautions, nor establish one without knowing how to extricate yourself later on. Moreover, under some circumstances the by-laws should be prepared as a notarial deed in order to avoid having them challenged in the future, especially if spouses or eventual heirs are involved, and in this case a meeting with your notaire will prove essential.