Set up a business partnership

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Setting up

In a 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 does not 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).

Brexit

Check how the new Brexit rules affect you

  1. Step 1 Check if being self-employed is right for you

  2. Step 2 Choose the name you want to trade under

    1. Check the rules for sole trader business names

    You can register a trade mark if you want to stop people from trading under your business name.

    1. Apply to register a trade mark
  3. Step 3 Check what records you'll need to keep

  4. Step 4 Register for tax

    To pay tax, you'll need to register for Self Assessment.

    1. Apply for a National Insurance number if you do not have one
    2. Register for Self Assessment

    You might need to register in a different way if:

    You may also need to register for VAT.

    1. Check if you need to register for VAT