There are three types of partnership:
- ordinary’ partnerships
- limited partnerships
- limited liability partnerships (LLPs)
Common features of partnership;
two or more persons responsible (the partners ) for business management.
- There can be partnership in between individual or another business, eg a limited company or another partnership
- the partnership must keep records showing business income and expenses
- a nominated partner must also send HMRC a partnership return
- each partner is personally responsible for paying tax on their share of the profits and gains, and for their National Insurance contributions.
- each partner must register for Self Assessment with HM Revenue & Customs (HMRC) and complete an annual tax return
- in partnership partners raise money for the business out of their own assets and/or with loans
- The partnership can have employees.