A partnership is a business structure where multiple individuals share ownership of the company. It has different tax obligations to a limited company.
A partnership is a type of business structure where two or more people share ownership of the company and also share management responsibilities. These people are called partners.
There are several types of partnership including general partnerships, limited partnerships, and limited liability partnerships. In a general partnership, all partners have unlimited liability for debt and obligations of the business. In a limited partnership, one or more partners have limited liability whereas in a limited liability partnership, all partners have limited liability. This means their assets are protected from business debts.
Partnerships only have to file a tax return with HMRC and not annual accounts with Companies House. Partners divide profit between themselves and each pay Income Tax and National Insurance contributions through a Self Assessment.
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