Enterprise - Partnership Checklist

Link:
http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073789536&r.i=1073789521&r.l1=1073858805&r.l2=1085161962&r.l3=1073864308&r.s=m&r.t=RESOURCES&type=RESOURCES

Checklist: setting up a partnership

In order to set up business as a partnership there are certain things you need to do - some must be done as a group and others as individual partners. You should:

• Display all the partners' names at all your business premises together with the address to which official documents should be sent.
• Display all the partners' names on your business website and stationery, including letters, invoices, receipts and cheques along with your principal place of business. If the partnership has more than 20 partners you need only display your principal place of business.
• Register the partnership, and each partner, for Self Assessment with HM Revenue & Customs (HMRC).
• Contact HMRC to register your partnership for VAT if you expect a turnover of more than £73,000 a year.
• Register with HMRC for PAYE (Pay As You Earn) if the partnership employs staff.
• Register with HMRC for the Construction Industry Scheme if the partnership is a contractor or sub-contractor.
  
  
  
  

Enterprise - Naming your partnership

Link:


 http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073789533&r.i=1073789504&r.l1=1073858805&r.l2=1085161962&r.l3=1073864308&r.s=sc&r.t=RESOURCES&type=RESOURCES

Naming your partnership

A partnership can trade under the names of the partners, 'Wright, Brown and Ali LP', for example, or it can use another business name - such as 'Fantastic Design Solutions Limited Partnership'.

If your trading name does not include the partners' names, you must still make sure that your business website and stationery - such as letters and invoices - display all of their names as well as the trading name - for example, 'Wright, Brown and Ali, trading as Fantastic Design Solutions Limited Partnership'.

If there are more than 20 partners then the business website and stationery do not have to list them, but they must show the address of the partnership's principal place of business.

The trading name should not be the same as, or too similar, to that of any existing business, and it should not contain words that people might find offensive or misleading.

In summary, as a partnership without our personal names within our trading name, it is required that our names, as individuals, need to placed within the business website and stationary - such as letters and invoices. The names of the four individuals within the business need to be placed along side the trading name - 'Lawson, Lawson, Rushfirth, Cherry, trading as Fourth Wall Partnership'

Enterprise - Business Structure - Working as a partnership

Based on the below advantages of working as a partnership, we decided that it would best suit our company; We are a partnership Business.




http://blog.thecompanywarehouse.co.uk/2010/03/01/advantages-and-disadvantages-of-partnership/

Advantages of Partnership

• Capital – Due to the nature of the business, the partners will fund the business with start up capital. This means that the more partners there are, the more money they can put into the business, which will allow better flexibility and more potential for growth. It also means more potential profit, which will be equally shared between the partners.
• Flexibility – A partnership is generally easier to form, manage and run. They are less strictly regulated than companies, in terms of the laws governing the formation and because the partners have the only say in the way the business is run (without interference by shareholders) they are far more flexible in terms of management, as long as all the partners can agree.
• Shared Responsibility – Partners can share the responsibility of the running of the business. This will allow them to make the most of their abilities. Rather than splitting the management and taking an equal share of each business task, they might well split the work according to their skills. So if one partner is good with figures, they might deal with the book keeping and accounts, while the other partner might have a flare for sales and therefore be the main sales person for the business.
• Decision Making – Partners share the decision making and can help each other out when they need to. More partners means more brains that can be picked for business ideas and for the solving of problems that the business encounters.

Disadvantages of Partnership

• Disagreements – One of the most obvious disadvantages of partnership is the danger of disagreements between the partners. Obviously people are likely to have different ideas on how the business should be run, who should be doing what and what the best interests of the business are. This can lead to disagreements and disputes which might not only harm the business, but also the relationship of those involved. This is why it is always advisable to draft a deed of partnership during the formation period to ensure that everyone is aware of what procedures will be in place in case of disagreement and what will happen if the partnership is dissolved.
• Agreement – Because the partnership is jointly run, it is necessary that all the partners agree with things that are being done. This means that in some circumstances there are less freedoms with regards to the management of the business. Especially compared to sole traders. However, there is still more flexibility than with limited companies where the directors must bow to the will of the members (shareholders).
• Liability – Ordinary Partnerships are subject to unlimited liability, which means that each of the partners shares the liability and financial risks of the business. Which can be off putting for some people. This can be countered by the formation of a limited liability partnership, which benefits from the advantages of limited liability granted to limited companies, while still taking advantage of the flexibility of the partnership model.
• Taxation – One of the major disadvantages of partnership, taxation laws mean that partners must pay tax in the same way as sole traders, each submitting a Self Assessment tax return each year. They are also required to register as self employed with HM Revenue & Customs. The current laws mean that if the partnership (and the partners) bring in more than a certain level, then they are subject to greater levels of personal taxation than they would be in a limited company. This means that in most cases setting up a limited company would be more beneficial as the taxation laws are more favourable (see our article on the Advantages and Disadvantages of a Limited Company).
• Profit Sharing – Partners share the profits equally. This can lead to inconsistency where one or more partners aren’t putting a fair share of effort into the running or management of the business, but still reaping the rewards.