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Remain as Sole Traders or register as Partnership?

PGard

PGard

New Member
Hi all, myself and my brother-in-law both work together, self employed as window cleaners. We both decided to work together from the beginning and we both came up with our business' name. We have a van with the business name on the side and have matching apparel with the business name on. However, we have both, individually, registered as sole traders with HMRC.
All the profits are being split 50-50 and we do our tax returns/report our earnings to HMRC separately, as individuals.

After doing a little research online it would appear that registering as a Liability Limited Partnership is definitely not beneficial to us considering the size of our business. I have also seen something called an "Unregistered Partnership" or "General Partnership" where you register as a partnership (without all the legal stuff and procedures etc) and when you come to filing your tax returns, you submit one for the business and you also submit individual tax returns. However, when I have looked on the GOV website, you can only register as LLP or Limited Partnership; both require lots procedures and being registered on Companies House, which we have no interest in doing.

So, my question here is... Is there any benefit to registering as a General Partnership? If so, how? To me it seems far simpler to remain as sole traders but working together. By working together as sole traders are we breaking any laws?

I hope I have given enough information above!
 
Needhelp

Needhelp

Active Member
Verified Member
Have you ever thought of a limited company? I presume you both have a degree of accountancy fees each year for your individual tax returns?

There are also other protections through a limited company which may prove interesting.
 
L

lookingforadvice

Member
Verified Member
I would think as long as you split the costs and income from the business, even though you are both sole traders, I very much doubt you are breaking any laws. However, I'm not an expert in this.

Have you considered putting the business into a limited company?
 
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