Unlike companies or LLPs, a partnership does not require any form of registration.
A partnership arises automatically when two or more people set up in business together with a view to making a profit. A partnership occurs whether or not you want one to occur.
The terms of a partnership are set out in the 1890 Partnership Act, although the terms can be amended if you draw up a separate partnership agreement to regulate the partnership. If you haven’t done this, speak to us quickly, otherwise the default provisions of the 1890 Act will apply which can be manifestly unsuitable for many.
Alternatively, you may decide to form Limited Liability Partnership.
LLPs are a type of business vehicle formed under the Limited Liability Partnership Act 2000. In very general terms, LLPs are a hybrid vehicle, sharing some of the characteristics of a partnership and some of the characteristics of a limited company. The LLP provides the members with limited liability. Unlike a partnership, the LLP in itself is a separate business entity distinct from its members and can employ staff and enter into contracts.
However, the members are taxed as individuals as in a general partnership. As with partnerships, it is vitally important that the members of an LLP have a written agreement to control the relationships between the members.
We also have a dedicated Partnership Law website where you can find more detailed information:
An LLP needs formal incorporation. You need to register the LLP at Companies House. We will help you register an LLP and draft partnership agreements. If all this sounds confusing, contact our Partnership team on 0161 832 6131 or get in touch by filling out one of our online enquiry forms.
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