Ltd or ordinary partnership?

danny7147

Free Member
Aug 2, 2014
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Hi all, I'm getting myself very confused at the moment as to which type of partnership to register for and would appreciate some opinions!

My wife and I set up a taxi company, two cars at the moment but expanding. From the outset I maintained that we would have no finance, owning everything outright which means the only regular bill is the insurance. Never say never, but due to the set up it's highly unlikely that there will ever be any debt associated with the company, as there's nothing owing.

So, I'm inclined not to register it as a limited, and I wondered if someone could advise of any pros that a limited liability may have over an ordinary partnership.

Lastly, on the gov websites it states that ordinary partnerships can't use names of local limited companies... that's not an issue, but does an ordinary partnership have any name protection that a lol has?
 
Congrats on the set up of your Taxi Company.

Only real advantage of an LLP is that partners in a limited liability partnership aren’t personally liable for debts the business can’t pay. Their liability is limited to the amount of money they invest in the business.

A big disadvantage is you are taxed like a sole trader and cannot take advantage of the being a full Ltd and in most cases be more tax efficient.

I would recommend speaking to an accountant so you can get the tax planning and company structure correct form the start.

Maybe have a read of the difference between Ltd v Sole Trader here:

http://www.rhjaccountants.com/accountancy-faqs/sole-trader-or-limited.php

If you want to protect your business name i would recommend going Ltd as to my knowledge as a sole trader this does not protect your business name.

Good luck with the business
 
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