In a partnership, you and your partner (or partners) personally share responsibility for your business. This includes:
- any losses your business makes
- bills for things you buy for your business, like stock or equipment
Partners share the business’s profits, and each partner pays tax on their share.
A partner doesn’t have to be an actual person. For example, a limited company counts as a ‘legal person’ and can also be a partner – see set up a limited company.
What you need to do
When you set up a business partnership you need to:
- choose a name
- choose a ‘nominated partner’
- register with HM Revenue and Customs (HMRC)
The ‘nominated partner’ is responsible for managing the partnership’s tax returns and keeping business records.
There are different rules for limited partnerships and limited liability partnerships (LLPs) – see GOV.UK guidance on set up and run a limited liability partnership and set up and run a limited partnership.
Structure your business
Name your business
Register your business
Choose your premises