1. Setting up

In an partnership, you and your partner (or partners) personally share responsibility for your business. This includes:

  • any losses your business makes

  • bills for things you buy for your business, like stock or equipment


Partners share the business’s profits, and each partner pays tax on their share.

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

What you need to do

When you set up a business partnership you need to:

The ‘nominated partner’ is responsible for managing the partnership’s tax returns and keeping business records.

There are different rules for limited partnerships and limited liability partnerships (LLPs).