Partnership formation advice

[TomB]

Hey all,

How is everyone?
I'm just looking for some advice about setting up a partnership.

Background Info:
There are three of us that are already registered self-employed running our own businesses. We have come up with a business idea that is fairly unique so have decided to setup as a partnership for this business.

I appreciate that as we are all ready registered as self employed we need to do nothing with the inland revenue, all we need is to draw up a partnership agreement and terms.

But with regards to profit and tax, how does this work.
I want it to be so that we have a completely seperate set of accounts for this business, with each of us sharing the profits, which is easy enough i guess, but what is the stance on profit retained in the business. For example if we make

 

[Brian McIntosh]

I would have thought that at least one of you would have an accountant. This would be the best way forward as he/she will be able to advise you the best way forward.

 

[Scottish Business Owner]

Hi Tom,

You'd do well to heed Brian's advice. There's just simply too many variables to consider and I think the setup and structure is key. Getting that bit wrong could cost you all.

 

[TomB]

Hey,

I do my own accounts, i did accounting and finance at uni for 2 years so I can handle my own accounts, as they are pretty straight forward. money in, expenses out, cost of sales and drawings and thats me really

the other two are don't have accountants are they are newly registered self-employed for this new tax year.

Do you think the business gateway would be able to give us enough advice to set this up?

Just worried that a visit to an accountant could be very pricey!!!

Without giving the advice an accountant would, how would it work tax wise?

Noticed the new look today, the new logo works much better i think!!

Cheers

Tom

 

[Brian McIntosh]

Business gateway are OK up to a point. An accountant should save you more than he costs you and, in your situation I would be making an appointment with one. If you haven't got an accountant, make an appointment with one as most give the first appointment free. My accountant did.

 

[stugster]

Another point: visiting an accountant will help you decide if a partnership is the right kind of structure for your business. You may find a Private Limited Liability company may be more suited? I don't know! That's the accountant's job!

 

[TomB]

yeah your right, better to get it right from the start than to make a mess of it and then have to start again. I've been reading about limited liability partnerships as well, might be another option.

Will an accountant be able to complete or help complete the companies house registration forms and all that, or will they just advise on the best strucutre and legal responsibilities.

Any ideas as well what a ball park figure might be for completeing the work. i mean just roughly i know it will differ from each accountant's fees.

its quite exciting actually!!

Actually just looked out the window and noticed a new accountants office currently being refurbished opening on thursday, spooky maybe its fate!!!!

 

[stugster]

Hi mate,

Yeh, an accountant should be able to do all the Companies House paperwork for you. They'll also process all your HMRC paperwork, PAYE returns, and Self Assessment for you

I think a rough figure for the setting up and finalising of all documents would be able

 

[TomB]

Wow thats a bit more that i was expecting!!!

I think a bit more research is need first before diving into a limited company.

Is that thing you know so excited about the actual idea that you forget all the work to get it ready and running!!

going to investigate a bit more and i'll let you know how we get on.

Cheers

tom

 

[stugster]

I did the company formation stuff myself, but I let my accountant do the year end stuff. The only other thing they'll probably advise you on for your

 

[TomB]

expensive advice.

One the three is quite knowledgeable about all that and currently works at a legal firm. so she might be able to discreetly get some help.

there would be three directors/owners.

will have a wee think

Might come back to you for some advice if thats ok

Cheers

T