Advantages

• Have more ideas and complementary skills
  
• Allows a greater business potential.
  
• Potential additional finance
  
• Shared responsibility for risks and costs
• No need for audited accounts (but must keep acounting records)

Contact a solicitor or an accountant

• Unlimited liability
• Jointly personally responsible for debts
• Each partner can make decisions and enter into binding contracts without gaining the agreement of the other partners
• Partnerships must be dissolved on death, resignation or bankruptcy of a partner

• Few formalities
• It is advisable to have a partnership agreement, that is, a deed of partnership that is drawn up by solicitors.

• Can trade under the names of all partners or a business name
• Check if the business name is legally acceptable (see 'Choosing a business name')
• Need to display name and address on premises and stationery
• If trading under a name other than that of the owner(s), must display name and address of owner(s)

• Each partner must be registered as self-employed with Inland Revenue
• You need to inform the local Tax Office and your local Job Centre where necessary

Newly Self-Employed Helpline 08459 15 45 15 8am - 8pm, 7 days a week

To speak to someone in Welsh call 08457 660 830

Minicom users: 08459 153 296

• Each partner is taxed individually on their share of the profits via income tax self-assessment.
• Each partner will normally pay Class 2 NI and Class 4 if profits are above a certain limit

• You must register if your turnover is £54,000 or more in a 12 month period

Custom & Excise: 0845 010 9000

• As a partnership, can take on employees