When 2 or more people go into business together it is a Partnership. There should be an agreement on how to split profits and who does what (essential when a partnership splits up). Simply advise HMRC and it is set up. It is easy to join a Partnership, and to leave, without worrying about shares etc. The way it is taxed is not so simple. It is less flexible than a limited company – you can’t move income to a later year to save on tax, and there is no limited liability, meaning that if one partner incurs debts in the business, then all partners are potentially liable – called joint and several liability.
What is a Business Partnership?
9 Aug 2019 | Business