Partnership / Self Employed ??

Fizzbang
Fizzbang Registered Posts: 11 Regular contributor ⭐ ? ⭐
Two mates decided to work for themselves, they trade under one name and split the profits – Partnership.

They have not as yet registered in any way of form with HMRC as they are unsure what to do. They have not asked or received any financial advice before embarking in business, it’s just a case of “I have a good idea”.

The thing is one of the mates wife is a playground friend of mine, I have explained the risks with partnerships to her which she wasn't too happy about. I just wondered if there was a way my playground friends husband could work self employed but still with his mate?

Any advice would be appreciated.

Thanks.

Comments

  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    By risks of a partnership I assume you mean that if the partners fall out? Why not just advise them to agree beforehand who will roughly be doing what, who will be paid what and acceptable exit strategies.
    Regards,

    Burg
  • Fizzbang
    Fizzbang Registered Posts: 11 Regular contributor ⭐ ? ⭐
    The "other" mate is a here and now sort of person and does not see any future consequences until it's too late so more in the line of if they are in debt that they can not repay one has more to lose than the other.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Type out a basic partnership agreement.
  • K H
    K H Registered Posts: 81 Regular contributor ⭐ ? ⭐
    This looks like an obvious case of using an LLP.
    This has the benefits of limited liability but the flexibilty of self employment.
    They are quite straightforward to use.

    K H
  • Fizzbang
    Fizzbang Registered Posts: 11 Regular contributor ⭐ ? ⭐
    K H wrote: »
    This looks like an obvious case of using an LLP.

    I had thought about LLP but wondered if there was another way if they didn't want to take this route. Just a feeling I had.


    Thanks
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    It is a matter of choice for the partners involved. I have a carpentry partnership on my books who have been working together for over 15 years - no problems.
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