A partnership is a business owned by two or more people acting as partners. No special legal requirements need to be met to form a partnership. All that is necessary is an agreement among the persons joining together as partner.
Your partnership agreement may be verbal and often is; especially when there are family members involved, a written agreement is preferred is preferred in order to facilitate the resolution of disagreements which may arise between partners.
Partnerships are not separate legal entities. The individual partners are personally liable for the debts of the partnership.
A partnership has a limited life. A partnership is dissolved and a new partnership created every time a partner leaves or a new partner is admitted.
Partnerships are suitable for small service enterprises, retail stores and professional practices.
The partnership lodges a separate tax return (Form P). The partnership doesn’t pay tax as the partnership is not a separate legal entity. Instead, each partner pays tax on their share of net partnership income. The partners will declare their share of profits or losses on their personal income tax returns and are personally responsible for payment of tax on their share of the partnership profits.
Services we provide
At JH Business Services & Taxation, we have extensive experience with the set-up and administration of Partnership entities. We can assist you with:
Please click here for our fees & charges for administration and preparation of annual accounts & tax return for partnership.