What is a partnership?

A partnership is usually yourself and a partner or several partners. All partners personally share responsibility for the business.

Partnerships are a common way to run a business, as it involves multiple inputs and management options, but still offers a great amount of control over operations.

A partner also does not have to specifically be an actual person. For example, a limited company counts as a ‘legal person’ and can also be a partner.

When in a partnership, you and your partner/s personally share the responsibility for the business.

This means:

• Any losses the business makes are shared among the partners.
  

• All bills for things bought for the business, like stock or equipment, is shared by the partners.

• All partners take a share of the business’s profits, and pay tax and National Insurance on their own share.