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Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
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Is a Partnership an Option?
A Partnership is simply a contract between two or more individuals who agree to form a business, contribute to it by combining property, knowledge or activities and share its profit.
Each partner is considered as self-employed and takes a share of the profits.
A partnership has no legal existence distinct from the partners themselves.
The declaration of partnership should be registered and available for public inspection. Compared to an LLP, all partners in the partnership manage the business and are personally liable for its debts.
Partnerships are tax transparent. Like an LLP, they also avoid the expensive National Insurance charges on the profit shares. The partners are taxed on their respective shares of the partnership's profits and gains.
The disadvantages of a Partnership are;
1. A traditional partnership would be bound by the partner's actions and to be able to recover the loss incurred by the defaulting partner, the other partners would have to rely on indemnities in their partnership agreement.
2. If one partner decides to leave the partnership, the partnership will automatically be dissolved. Unless there is a partnership agreement which provides for the partnership to continue between the remaining partners.
3. Partners do not enjoy any protection if the business fails unlike with the members of an LLP. Creditors can claim a partner's personal assets to pay off any debts, even those caused by other partners.
See Also
Limited Company
Limited Liability Partnerships
Legals
Taxation
Recommended Links
Each partner is considered as self-employed and takes a share of the profits.
A partnership has no legal existence distinct from the partners themselves.
The declaration of partnership should be registered and available for public inspection. Compared to an LLP, all partners in the partnership manage the business and are personally liable for its debts.
Partnerships are tax transparent. Like an LLP, they also avoid the expensive National Insurance charges on the profit shares. The partners are taxed on their respective shares of the partnership's profits and gains.
The disadvantages of a Partnership are;
1. A traditional partnership would be bound by the partner's actions and to be able to recover the loss incurred by the defaulting partner, the other partners would have to rely on indemnities in their partnership agreement.
2. If one partner decides to leave the partnership, the partnership will automatically be dissolved. Unless there is a partnership agreement which provides for the partnership to continue between the remaining partners.
3. Partners do not enjoy any protection if the business fails unlike with the members of an LLP. Creditors can claim a partner's personal assets to pay off any debts, even those caused by other partners.
See Also
Limited Company
Limited Liability Partnerships
Legals
Taxation
Recommended Links