Partnership Or Ltd Company

dottygirl

Hi I may have the opportunity to go into business with a lady who shares my vision for a coffee shop. Can anyone explain the difference between a partnership and a limited company. She would if she accepts put in 25% of the finance required. Thanking you in advance.

Annisele

Try Business Link for a brief explanation.

(That site is aimed at England - if you're somewhere else, tell us where and people will be able to give you a better link).

Horace

Ensure that you do your due diligence on this woman even though she is putting money into the business. I very nearly went into partnership with someone and then I discovered she had massive debts and seemed to spend money like water.

Best to speak to an accountant - a Limited Company has to pay corporation tax and you would be employees so would pay tax and NI as well, I don't know much about partnerships so again best to speak to an accountant.

paddyrg

I would typically suggest you look at shareholdings in a limited company as opposed to a partnership - with a ltd co you could decide between you who will be a director, or the voting rights for each person. With a partnership, you are as I understand it both liable for the whole of any debts, with a limited company things are a bit more ringfenced.

But as above, see an accountant for the ins and outs for your case.