Partnership is a relatively simple and flexible way for two or more people to own and run a profit-making business together.
Unlike the shareholders in a limited company, the members of a general partnership have no financial protection if the business runs into trouble - each partner is responsible for the debts of the partnership as a whole. This means that each partner’s personal assets may be at risk if the business fails.
Disputes between partners can cause difficulties, and the partnership may have to be dissolved if one of its members resigns or dies. It’s possible to resolve these issues in advance by drawing up a deed of partnership. It may be a good idea to consult a solicitor so that each partner gets legal advice before finalising their level of responsibility in a deed. The partners are not only responsible for managing the business, but also “jointly and severally” liable for any debts incurred by the business and the profits are shared between the partners based on pre-agreed percentages.
These are the usual questions you might have in relation to Partnerships:
How much tax will I pay as a partner?
How do I pay National Insurance contributions while I’m operating as a partnership?
What are my tax deadlines for next year?
We can answer these and many other questions that you may have. You know how to run your business - leave it to the experts to take care of the rest.