Alternatives to Ltd company

uk

[aspdaddy]

What legal entity allows a small number of independants to trade and take payments as a single company/brand without owning shares and continue to file own tax returns.

[rj87uk]

I don't know loads about business things - I let my accountant do all that, but sounds to me like you want to be a sole trader?

RJ

---- shut up RJ, I am talking loads of rubbish never mind me.

[HarryM]

Partnership?

[DamonHD]

Sole Trader (ie self-employed).

[aspdaddy]

I think that is it. Can a partnership have a bank account & registstered address? Can it pay its own costs and then pay partners everything else?

[topr8]

... as you know i'm not an accountant, but i was looking into this recently.

a partnership is a seperate legal entity (this can help with vat, eg if you are a sole trader and turning over less than the vat limit, then the partnership turnover is counted seperately - although that may attract vat in its own right of course)

basically a partnership must produce its own set of accounts, pay its costs and then may distribute the profits to the partners - partners can be equal or unequal)

however a partnership should have a legally drawn up document - not sure what it needs to say but an accountant/lawyer will of course know... this is the important/tricky bit, because if you are both a sole trader and a partner in very similiar businesses with similiar clients then the IR will be especially interested in how you seperate the two.

[aspdaddy]

Thanks for that.

Do you know if a partnership can pay 100% of income - costs (pre-tax) to its members or does it have to pay money out as wages and corporation taxes. Would the members invoice the partnership?

[DamonHD]

[hmrc.gov.uk...]

[centime]

talk to your accountant

But you want to be wary of the unlimited liability aspect of partnerships

All liabilities of a partnership are likely to be recovered from the partners in the ratio of their interest in the partnership, with no limits on their personal liability

Ask your accountants, ask them about

limited liability partnerships

[Essex_boy]

A limited liability partnership would the trick, see your accountnat.

[piatkow]

Depending on the nature of the enterprise a "company limited by guarantee" may be a suitable option but my knowledge of company law comes from my previous career before IT which was a long time ago. You really need to consult a professional advisor.