Partnership
A partnership is a voluntary association of two or more persons who carry on business together with the purpose of making a profit.
The benefits of a Partnership are:
- There are no special legal rules to operate under.
- No formalities are involved in setting up or running the business, although it is advisable to draw up a written contract.
- No information relating to the business need be made public.
The disadvantages of a Partnership are:
- All profits are shared.
- If the business's assets cannot meet its debts, the partners remain jointly and severally responsible for the debts of the business.
- The potential liability of individual partners for the debts of the business is unlimited.
If you decide to set up business as a Partnership we can help guide you through the maize of financial and other records you will be required to keep. You may even wish us to maintain the financial records for you. We will advise you if you require to be registered for VAT. We will also help you register your business with HMR&C. At the end of your trading year we will prepare financial accounts for you, complete the Partnership Tax Return, calculate each of the partner's Income Tax liability, complete the individual Tax Returns and send them off to HMR&C. We will even speak to the tax office on your behalf.
As your business grows you may find you need to take on an employee(s). Again we will advise you on your legal obligation to operate PAYE. If you find the idea of PAYE daunting our payroll bureau will do the work for you.