What to set up: Company or Partnership?

stephenie · Apprentice Joined: 17 Mar 2005 Posts: 3

I was working together with my colleague and now friend for 8 years. We are really bored working for others. We are deciding to set up something for ourselves. What to set up: Limited Company or Partnership? I heard that many people set up small business as Limited Company. Could you please tell me something about Limited Company and Partnership? Thank you in advance.

llewellyn · Apprentice Joined: 05 Jul 2006 Posts: 1

When a business is run by two or more people we are talking about partnership. Agreement has to exist and according to the agreement the profit is shared between partners. Also if you own 3 % this means that you are responsible 100 % for liability. In Limited Company shareholders have limited liability. They are not responsible for company debts. The requirements of Limited Company are: company has to be registered, employees must pay income tax and insurance, annual return must be completed each year. The most sensitive issue is when someone who is not running a business, is involved in shared capital. So, decision is yours company or partnership. Good luck.

What to set up: Company or Partnership?

LIFEFORM SOCIAL COMMUNITY NETWORK