Can two sole traders work together ?

CoolhandLuke_3

My Wife and her friend are planning on opening a hair salon. They both want to keep what they earn as my wife will be working less hours than her friend so as a limited company a share of the profits wouldn't work for them.

my understanding is, is that they would be better to work as two sole traders rather than a partnership or to be directors of a limited company.

How do they go about registering the shop name and insurances if they are going to be sole traders - do they both need their own insurances?

Any help will be appreciated as i really have very little understanding on this subject.

TIA

[Deleted User]

Why not form a partnership and allocate profits according to hours worked? Profits can be split in whatever ratio suits.

00ec25

CoolhandLuke wrote: »

my understanding is, is that they would be better to work as two sole traders rather than a partnership

why do you think that?

form a partnership and register the business assets in its name, job done

chappers

[Deleted User] wrote:

Why not form a partnership and allocate profits according to hours worked? Profits can be split in whatever ratio suits.

Or a limited company for that matter they can take different salaries or dividends

Pennywise

chappers wrote: »

Or a limited company for that matter they can take different salaries or dividends

Though dividends have to be in proportion to shareholding.