How to register a partnership

[Ernie]

Hello there! My girlfriend and I are about to start our first business. We want to start as a partnership, but we got a few questions:

• Can we register the partnership while still working as employee for others companies?
• We're about to open a cafe, but we haven't got lease for the premises yet (almost there). Can we use our personal address to set up the partnership? If so, when we get the premises should change the address straight away or can we leave it as it is?

That's to begging with, I'm sure other questions will appear on the process.

Thanks,

Ernie.

 

[Gecko001]

You do not "register" a partnership unless you are forming a Ltd company. You should get a partnership agreement drawn up with the help of a solicitor. This will mean that if there is a dispute between the partners at a future date, you will be able to refer to the partnership agreement and also it will lay down the procedure for when the partnership dissolves (you both go separate ways or one of you dies tec.). You will be both self-employed.

 

[Ernie]

Thanks Gecko001.

Can we be self-employed and also work as and employee for other companies?

When filling up the SA400 (Registering a partnership for Self Assessment) form can I use my personal address till I sort out the lease of the premises? They also ask "When did the business commence", if we haven't started yet, should we use the same date as when filling up the form?

No idea of what they are asking when they say "What is the partnership’s accounting date?"

As you can see this is totally new for us, any guidance is more than welcome.

Thanks,

Ernie.

 

[Scalloway]

If you haven't started yet I wouldn't fill out the form until you actually start.

You can be self employed and a be an employee at the same time. You must enter your employment income income on your self assessment form as well as your share of partnership profits to make sure you pay the right tax.

The partnership’s accounting date will be the last day of the month your financial year ends on. For simplicity with the way the tax system works many businesses choose 31 March.