When working with multiple people within a business it can often be a good idea to form some kind of partnership. This formalises your arrangement and can protect all parties involved. However, because UK regulators seldom make things easy, you’ll have to carefully select which type of partnership is right for your business. Following this, you’ll need to formally register the partnership, a process that differs based on which form of partnership you select. Due to the importance and difficulty of forming your partnership, getting help from a team of professionals like LM Accountants can spare a lot of headaches.
As we mentioned, there are a few different types of partnerships. To give you an idea of the requirements for forming each partnership, we’ve explained the details below:
Ordinary Partnership – This type of partnership is the most simple and flexible. It doesn’t have a legal distinction separate from the partners themselves. If one of the partners dies, resigns, or goes into bankruptcy, the partnership must be dissolved. However, the business can keep on running. Even ordinary partnerships must be registered with HMRC, which is the job of the designated partner.
Limited Partnership – A limited partnership is formed by a mixture of ordinary and limited partners. This type of partnership requires formal registration with Companies House.
Limited Liability Partnership (LLP) – An LLP is taxed as a partnership but receives the same benefits as a corporation. This makes them particularly attractive to larger businesses. However, they require more work as registering, sending an annual return, and filing accounts with Companies House are all necessities.
Registering with Companies House and filing the plethora of required paperwork can be tedious and time-consuming. So, to make the entire process as easy as possible for you, we can schedule a meeting and discuss your business, the type of partnership best suited to your needs, and the services that’ll be required. This allows us to individually tailor our partnership services in order to ensure each business is set up in the most sensible and efficient manner.
If this sounds confusing or you’re not sure which is right for you, don’t worry! We can schedule a meeting at a time convenient for you, to discuss which partnership is best suited to your needs.
If you’re ready to form a partnership or need assistance with anything accountancy-related, you can give us a call at 0800 861 1497, fill in our online enquiry form, or head into our offices located in Kirkwall for a face-to-face chat.
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