Partnership or self employed

andy_b_5

Hi all,

Myself and an associate wish to start a part-time business running courses say once a month.

We will still be in full time employment.

First do we need to register the company?

Should we form a partnership or be sole traders working together?

What other issues do we need to address?


We will not have premises as all the courses will be run outdoors.

We have a website done.

Thanks for your time.

antrobus

If you and an associate are starting up in business together then that is a partnership.

You could set up a limited company and run your business through that but, given that it's only a part-time business at the moment, there isn't any particular advantage to using a company. You can, in any case, always incorporate the business at a later date.

As to what else you should consider ... getting the agreement between you and your associate as to the conduct of the business down in writing might be a good idea ... insurance (running courses outdoors suggests physical activity to me and the potential for injuries)

And get yourself an accountant.

Buzzman_2

As antrobus says if you and an associate start a business you can either do it as a partnership or ltd company

In a standard or ordinary partnership you are both self employed but run a business as a partnership - you and the partnership need to register with HMRC

With a Ltd company you could both be directors of the company but you would also by employees taking a salary and dividend (from any profits) n.b. a ltd company is a separate legal entity from you

There are pro's and con's of each but running a partnership is in my opinion more straightforward with less paperwork.

One of the most important things to do is draw up contracts and to get your T&Cs in place - it can seem boring but it's essential to running a serious business - and can really save you a lot of grief down the line if things go bad (with either your partner or a client)

www.businesslink.gov.uk has some great info on partnerships and legal requirements - and an accountant can really help you structure things in the right way and save you a lot of money

Good luck with the venture - exciting times!

paulwf

I would be careful with any route and take legal advice. When a business has a 50/50 split between two people when it ends it can get very messy, there are numerous threads on here about it and from what I've heard personally. With an exactly equal division of the business is only requires one partner to want to change something and the other resisting and problems soon arise.

I would seriously consider who is going to be the main partner and setting up a Ltd structured accordingly. It will make life much easier a couple of years down the line when the business has grown and you need to start taking it in a new direction.

Of course I am the voice of doom and gloom on this forum