Going into partnership - what's entailed?

Seanie M

Hi folks,

this is my first post in this forum, so bear with me. Your inputs are appreciated.

Long story short, I am a Sole Trader for the past 2 years, but I am considering going into partnership with my brother (currently in PAYE employment) to expand the services on offer. We both have 2 halves which, when combined, should prove worthwhile setting up "together".

Are we creating a Partnership, or a company? We will be worth 50/50 of the business each. I am trying to find the best places of info such as are we going as a limited company, or a partnership, developing a new name from my current one (to reflect the change in services).

Rferrals and links, as well as suggestions, welcome.

Seanie.

ircoha

p/ship makes u all joint and severally liable for all the debts of the p/ship.
In other words ur ass is on the line for the bro's transgressions

u need a p/ship agreement to cover all the things u need to cover, including an exit pricing mechanism.
A ltd co reduces the personal risks and unless u come to the attention of the ODCE for reckless trading and related bad behaviour as a director, it is prolly the better option.
HTH

Sully

Seanie; Go speak to your accountant and have a business plan ready. Should sort you out.

kaiser sauze

A Limited Company is a good option, but just factor in the slightly higher expenses. You've better options for extracting money out of the business, for immediate benefit and future benefit, this way. A L/C gives marginally better protection to your business name, but is a halfway-house from a trademark.

You are talking about a partnership with the intro you gave.

I myself will am a co-director, and equal shareholder, of one Ltd. Co. and partner in one other business along with owning two other enterprises outright.

Whichever option you chose, it will not infringe on your future options.

Seanie M

Thanks for the input and thoughts guys. It is kind of making me more excited now!