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Setting up a business partnership
mjgreen60
Posts: 230 Forumite
Hi there
Me and 2 friends own a website on the back of which we have released an iPhone app with android version to follow soon. Through this and some advertising on the website, we have now started to make a modest amount of money, nothing huge but it helps!!
We are thinking about setting up as a business partnership so that we can be responsible and sort out the tax/NI owed etc.
All of us are in full time employment, 2 employed so pay through PAYE and the other runs his own ltd business so all tax issues sorted through that.
From what I understand so far we need to draft up an agreement between us for what we jointly own in the business and how profits will be divided out. I also see we all need to register for self assessment and then one of the partners also needs to register the partnership with HMRC to do returns for the business.
2 questions mainly, firstly, does anyone know of any draft versions of agreements for this kind of thing. And also, will we all have to pay NI on earnings of this kind? If so, at what rate?
Many thanks
Matt
Me and 2 friends own a website on the back of which we have released an iPhone app with android version to follow soon. Through this and some advertising on the website, we have now started to make a modest amount of money, nothing huge but it helps!!
We are thinking about setting up as a business partnership so that we can be responsible and sort out the tax/NI owed etc.
All of us are in full time employment, 2 employed so pay through PAYE and the other runs his own ltd business so all tax issues sorted through that.
From what I understand so far we need to draft up an agreement between us for what we jointly own in the business and how profits will be divided out. I also see we all need to register for self assessment and then one of the partners also needs to register the partnership with HMRC to do returns for the business.
2 questions mainly, firstly, does anyone know of any draft versions of agreements for this kind of thing. And also, will we all have to pay NI on earnings of this kind? If so, at what rate?
Many thanks
Matt
Just started comping - 1/12/08 - keep your fingers crossed!
0
Comments
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I suggest you start by reading some of the previous partnership threads on this forum - there are some real hazards waiting for you if you don't get things clear from the start!
At the very least see a lawyer - you are becoming severally and jointly liable for the partnership finances, it is easy to get yourself into big problems through no fault of your own. You may also prefer to consider different company structures, a partnership may not be the optimal one for you.0
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