Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • sue311
    • By sue311 14th Mar 17, 8:24 PM
    • 36Posts
    • 3Thanks
    sue311
    sole trader to become a parntership
    • #1
    • 14th Mar 17, 8:24 PM
    sole trader to become a parntership 14th Mar 17 at 8:24 PM
    Hi all,
    My sister has worked for herself ever since leaving University and has built up quite a good little business in the 3 years since she graduated.
    She has so much work on that she is having to turn away new clients.
    I was working full time untill I had a baby who is now nearly one and she has asked if I want to go into partnership with her.
    She has done her accounts herself since she started the business but I wouldnt know where to start.
    She doesnt take all money earned out of the business as wages as she is trying to build up the business and is doing a pretty good job of it actually.
    Does any one know how the accounts are done in a partnership please, since having the baby I would love to refrain from going back to work full time.
Page 1
    • anamenottaken
    • By anamenottaken 14th Mar 17, 10:17 PM
    • 3,968 Posts
    • 3,420 Thanks
    anamenottaken
    • #2
    • 14th Mar 17, 10:17 PM
    • #2
    • 14th Mar 17, 10:17 PM
    Partnership - you share the responsibility for the debts of the business and you should have a written agreement on whether you share profits 50/50 for example.

    What sort of income would you expect? Would being an employee of your sister be possible? That is, I wondered if you could be paid the National Living Wage (or NMW depending on your age) which would be a requirement if you were an employee.
    • Savvy_Sue
    • By Savvy_Sue 14th Mar 17, 10:43 PM
    • 37,520 Posts
    • 33,835 Thanks
    Savvy_Sue
    • #3
    • 14th Mar 17, 10:43 PM
    • #3
    • 14th Mar 17, 10:43 PM
    DON'T whatever you do enter into a 50/50 partnership with her. That's a recipe for disaster should you ever disagree: you have stalemate!
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 1 shawl, 2 pairs baby bootees,
    1 Wise Man Knitivity figure, 1 sock ...
    Current projects: 1 shawl, t'other sock (just about to turn the heel!)
    • paddyrg
    • By paddyrg 15th Mar 17, 6:00 AM
    • 13,014 Posts
    • 11,085 Thanks
    paddyrg
    • #4
    • 15th Mar 17, 6:00 AM
    • #4
    • 15th Mar 17, 6:00 AM
    Partnership has a specific legal meaning, which is unlikely to be what actually will work best for you, especially as she had already invested 3 years and the adminstration imbalance. Instead I'd suggest starting off as a flexible employee to cover clients she's too busy for, and as you start bringing your own clients so so on a chair rental basis like many salons and hairdressers. It keeps it flexible for you if you need to spend more time with the baby, and means she can get other people to cover or bring their own clients to her premises. That would be pretty flexible all round without the burden of a formal partnership which will lead to tears from your description, and leaves you 100% liable for any business debts too.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,222Posts Today

9,100Users online

Martin's Twitter