Buying a business - Partnership or not?

BillVTS

My partner is currently a sole trading hairdresser but now has the opportunity to purchase an existing salon to expand the business however, I will be putting up half of the funds for the purchase of the existing salon.

I would not be taking an active working role within the salon and would be continuing with my existing day job. What is the best way to start this new business, should we change to partnership or would it be better to go ltd? How will my half of ownership in relation to profits effect what tax I pay?

I'm not intending on taking an actual wage but there would have to be some way of paying back my original contribution, what's the best way to tackle this?

Thanks in advance.

Carl31

Surely as an investor you would expect a share of the profit? As a partnership you would come to an agreement. Of course if it goes belly up, you also share the burden.

Ltd co would be safer for you, again with a return based on the co performance. How you receive that is to be agreed by you and the co.

If you want paying back, then its up to the co or partner to buy your share off you