For entrepreneurs, going into a partnership takes the loneliness out of starting a new business and gives you someone to bounce your ideas off, as well as emotional support when things aren't going smoothly.
While generally, all the partners will take part in the day-to-day running of the business and get an equal share of its profits, there are two other types of partner. Sleeping, or dormant partners invest money but don't help to run the business - even though they are still liable for its debts. Companies can also be partners in a business, with the same responsibilities but different obligations when it comes to tax.
To register a partnership, you will need to fill in a Memorandum and Articles of Association, which you can obtain from a law stationers or a company formation agent, such as Smarta. You can then register a partnership either by downloading or sending off for the relevant forms from Companies House, or by seeking advice from a solicitor, accountant or formation company. In the case of partnerships, seeking legal advice is wise.
When you are starting a partnership, it's important to draw up a contract that outlines who is liable for what and, should the business go under, what steps the business will take if one partner wants to leave. It is highly advisable to seek guidance from a solicitor, who will be able to make sure the contract is water tight.
You can set up a partnership with Smarta - we offer a company registration service powered by the National Business Register. You can search for available names then register a business name, or set up a company and/or register a trademark with us. You will receive a professional binder with all your official documents via post within 3-days.
Smarta Formations is the quickest and easiest way for you to register your limited company. All the hard work is handled for you.