When two or more people decide to go into business together and want to stay clear from setting up a limited company, a partnership is often the yellow brick road to skip down.
Within a partnership business, you and your partner(s) will share the responsibility for the business which will include;
- Any losses the business may make
- Business costs, for example purchasing stock
Partners will share the businesses profits between them and pay tax on their own individual takings. When talking about partners it does not have to be a physical person, a partner could be a limited company.
So, what do you need to do when setting up?
- Decide on a name for the business
- Select a nominated partner
- Register your business with HM Revenue and Customs
The partner that has been nominated will be responsible for the business’s tax returns and maintaining records.
How do you name your partnership?
When thinking of a name for your business it can be hard, but you have your options, when registering as a partnership you can name the business under your own names or you can choose another – you do not need to register your name. However, documents such as official paperwork must contain the business names and all partners names.
What can the name not include?
- The name cannot contain any offensive/taboo language *‘limited’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’
- The same as an existing trademark
- Sensitive language that suggest a relationship with the government or local authorities – unless you have permission
If you do not wish for anyone else to use your business name you must register is as a trademark.
For more information visit GOV.UK