Running business together with a partner

kleshnia

Hi, I need advice please (i hope that's the right thread)..my fiance has started business a while ago..a couple of years ago i have joined in to run a different side of the business..my partner pays for everything (rent, materials etc.)..i work on a self-employed basis and we share a profit from the jobs i do (from my side of the business)..i have taught myself how to do everything (not my fiance)..apart from the main business i also do website, social media, answer emails, site visits.
i have a dilemma here as nothing is on the paper..and i don't know if i should ask him to put me on the paper, open up my own limited company or am i being ungrateful? should we just carry on how we are? my partner thinks also i should contribute towards the rent...would that be fair?
we also have a few people who work we me and who i train to the stuff i do...i and i feel that if anything will happen i will be replaceable and left with nothing.. it probably sounds terrible...but please give me advice on that would be best for both of us??

Comms69

kleshnia wrote: »

Hi, I need advice please (i hope that's the right thread)..my fiance has started business a while ago..a couple of years ago i have joined in to run a different side of the business..my partner pays for everything (rent, materials etc.)..i work on a self-employed basis and we share a profit from the jobs i do (from my side of the business)..i have taught myself how to do everything (not my fiance)..apart from the main business i also do website, social media, answer emails, site visits.
i have a dilemma here as nothing is on the paper..and i don't know if i should ask him to put me on the paper, open up my own limited company or am i being ungrateful? should we just carry on how we are? my partner thinks also i should contribute towards the rent...would that be fair?
we also have a few people who work we me and who i train to the stuff i do...i and i feel that if anything will happen i will be replaceable and left with nothing.. it probably sounds terrible...but please give me advice on that would be best for both of us??

You've simply posted a load of waffle, sorry.


Lets start from the top:


1: Does your partner run a company, or is is self employed / sole trader?
2: When you do work for your partner, what do you actually do?
3: these people you employ, who pays them?


Just explain things clearly, step by step; including what the 'business' is and what your partner does

kleshnia

Yes, i tought so..sorry.

Below my answers to your questions:

1: Does your partner run a company, or is is self employed / sole trader?
he runs the company

2: When you do work for your partner, what do you actually do?
i make art pieces made of natural materials, i also do the website, social media, emails (for my side of the business) and site visits etc.

3: these people you employ, who pays them?
my partner

Just explain things clearly, step by step; including what the 'business' is and what your partner does: it is a gardening company. my partner runs the gardening side of the business. we also provide an interior service (art pieces made of various natural materials), i make them.

hope this is more clear. i'm happy to answer any other questions. thank you

Comms69

kleshnia wrote: »

Yes, i tought so..sorry.

Below my answers to your questions:

1: Does your partner run a company, or is is self employed / sole trader?
he runs the company - So to clarify. It's a ltd company set up with companies house?

2: When you do work for your partner, what do you actually do?
i make art pieces made of natural materials - and the business sells these?, i also do the website, social media, emails (for my side of the business) and site visits etc. - I'm sorry im still confused. You keep saying your side of the business, but how is that linked to his side? Except making art pieces?

3: these people you employ, who pays them?
my partner - So not the ltd company?

Just explain things clearly, step by step; including what the 'business' is and what your partner does: it is a gardening company. my partner runs the gardening side of the business. we also provide an interior service (art pieces made of various natural materials), i make them.

hope this is more clear. i'm happy to answer any other questions. thank you

I cant work out to be honest what your role is - in terms of legality.


Normally I would say this is a partnership (minus the agreement) but you said there's a company.

tacpot12

It sounds like your two businesses are relatively separate. Your business is a customer of your partner's business, and I would be inclined to keep it this way, providing you are earning enough to earn your entitlement to the state pension. Just make sure that you issue an invoice to either your partner's business or to the end customer, to make it clear what income you are generating in your business. There is no need for anything to be more "on paper" than this.

If you don't need business premises to run your business, there is no need to contribute to the rent. If you do need business premises, then you could become an employee of the company, and be paid a salary and have use of the premises as side result. Your income would come into the company, and less a deduction for rent, insurances, etc, the remainder paid out as salary. If your income is very variable or you are not sure how long you want to run your business for, this arrangement would not be very good for your partner.

kleshnia

1: Does your partner run a company, or is is self employed / sole trader?
he runs the company - So to clarify. It's a ltd company set up with companies house?

It is a limited company, yes.

2: When you do work for your partner, what do you actually do?
i make art pieces made of natural materials - and the business sells these?, i also do the website, social media, emails (for my side of the business) and site visits etc. - I'm sorry im still confused. You keep saying your side of the business, but how is that linked to his side? Except making art pieces?

yes, the business sells them. i either make them to sell, or we get customers who order bespoke designs..i design and make.

it is sort of my side of the business but not on the paper..my partner (or the company) is 100% shareholder..my partner mostly runs gardening side, and im doing almost everything to do with art pieces.

3: these people you employ, who pays them?
my partner - So not the ltd company?

yes, limited company. my mistake.

Comms69

kleshnia wrote: »

1: Does your partner run a company, or is is self employed / sole trader?
he runs the company - So to clarify. It's a ltd company set up with companies house?

It is a limited company, yes.

2: When you do work for your partner, what do you actually do?
i make art pieces made of natural materials - and the business sells these?, i also do the website, social media, emails (for my side of the business) and site visits etc. - I'm sorry im still confused. You keep saying your side of the business, but how is that linked to his side? Except making art pieces?

yes, the business sells them. i either make them to sell, or we get customers who order bespoke designs..i design and make.

it is sort of my side of the business but not on the paper..my partner (or the company) is 100% shareholder..my partner mostly runs gardening side, and im doing almost everything to do with art pieces.

3: these people you employ, who pays them?
my partner - So not the ltd company?

yes, limited company. my mistake.

Great thanks for clarifying.


So in reality you're a designer and the ltd company is your client. you should be invoicing the company for your services. The ltd company should be making all consumer focused sales.

kleshnia

It sounds like your two businesses are relatively separate. Your business is a customer of your partner's business, and I would be inclined to keep it this way, providing you are earning enough to earn your entitlement to the state pension. Just make sure that you issue an invoice to either your partner's business or to the end customer, to make it clear what income you are generating in your business. There is no need for anything to be more "on paper" than this.

my partner owns 100% of the company.
should i open up my own ltd? i don't feel secured working on a self-employed basis

If you don't need business premises to run your business, there is no need to contribute to the rent. If you do need business premises, then you could become an employee of the company, and be paid a salary and have use of the premises as side result. Your income would come into the company, and less a deduction for rent, insurances, etc, the remainder paid out as salary. If your income is very variable or you are not sure how long you want to run your business for, this arrangement would not be very good for your partner.

we need premises...his company pays for it..i don't think i should be paying for it too as it won't be coming off my tax

kleshnia

Great thanks for clarifying.


So in reality you're a designer and the ltd company is your client. you should be invoicing the company for your services. The ltd company should be making all consumer focused sales.

i do invoice the company but i am on daily rate...is it fair? or should i be charging for a project etc.? am i allowed to showcase my designs that i made for the company somewhere else?

Comms69

kleshnia wrote: »

Great thanks for clarifying.


So in reality you're a designer and the ltd company is your client. you should be invoicing the company for your services. The ltd company should be making all consumer focused sales.

i do invoice the company but i am on daily rate...is it fair? or should i be charging for a project etc.? am i allowed to showcase my designs that i made for the company somewhere else?

You're self employed - there is no fair ( I mean there's very little 'fair' anyway) you aren't entitled to minimum wages, holiday, pension etc.


Starting your own ltd company wouldn't change that.


Showcasing would depend on what your agreement with the client was.

kleshnia

You're self employed - there is no fair ( I mean there's very little 'fair' anyway) you aren't entitled to minimum wages, holiday, pension etc.


Starting your own ltd company wouldn't change that.


Showcasing would depend on what your agreement with the client was.

is it ok that i am asked to teach others in the company to do something i've taught myself? what if after teaching them the company can say goodbye to me and what i wil;l be left with? it's quite a niche business..i would have to start from the beginning and won't be able to use example of my own work i have done for the company