This site is intended for health professionals only

What are the benefits of remaining a partnership as opposed to limiting our liabilities as a private company?

What are the benefits of remaining a partnership as opposed to limiting our liabilities as a private company?

|

Answer:

Whilst there are obvious benefits in incorporating a business as a limited company, not least the limitation of members' personal liability for the debts of the business, there are also a number of advantages of retaining a traditional partnership structure.

Answer:

Whilst there are obvious benefits in incorporating a business as a limited company, not least the limitation of members' personal liability for the debts of the business, there are also a number of advantages of retaining a traditional partnership structure.

Incorporation comes with the added layers of administration which are imposed by companies legislation, such as the obligation to file many of the company's constitutional, financial and organisational documents at Companies House, and to prepare and file audited accounts.

Partners are also able to run a partnership with a much higher degree of privacy and independence than would be possible with a limited company – for example, there is no requirement for a partnership to make public its Partnership Agreement, which is in contrast to the complete transparency required of a company.

There is also greater organisational flexibility associated with operating as a partnership rather than a corporation as the strict requirements of companies legislation in relation to the organisation's structure and governance are not applicable.

Partners pay income tax on their income from the partnership. Employees of a company pay income tax on their salaries and other taxable benefits from their company. However, a company, unlike a partnership, is also subject to corporation tax on its profits.

|

Questions & answers

Wed 27 May
Wed 27 May
The Queen’s Speech today confirmed pre-election plans and Cameron’s post-election speech focusing on creating a seven day NHS
Fri 22 May
Fri 22 May
GPs' contracts should be replaced by a payment by activity contract where doctors pay is dependent on their workload, LMCs voted today at the LMC conference in west London.
Tue 17 March
Tue 17 March
NHS England has announced action to improve race equality across the NHS workforce.
Tue 17 June
Tue 17 June
New recommendations to create greater transparency and more stringent data regulation have been released by the Health and Social Care Information Centre (HSCIC)
Mon 24 June
Mon 24 June
Concerns about an ageing workforce have led to a call for evidence into the impact of raising the pension age
Wed 20 June
Wed 20 June
Some employers have Extended Leave or Careers Break policies and the most obvious starting point is to check whether your practice has one
Wed 20 June
Wed 20 June
If the patient wasn't deaf, he would be entitled and able to access counselling services if offered to him. It is not proportionate to not offer counselling because of the cost to provide an interpreter
Wed 20 June
Wed 20 June
There is no clear definition of ‘locum’ for employment law purposes
Wed 20 June
Wed 20 June
Whatever the reasons for you receptionist's poor performance, you must tackle this
Fri 17 February
Fri 17 February
The answer is likely to be yes. Under the Equality Act 2010 the GP practice will discriminate against the patient if they treat him unfavourably because of something arising in consequence of the patient's disability
Wed 15 February
Wed 15 February
Extended periods of unpaid leave are termed career breaks. Some employers have Extended Leave or Careers Break policies and the most obvious starting point is to check whether your practice has one
Thu 1 December
Thu 1 December
The partnership agreement is effectively the contract under which a partner provides services to the partnership, and its terms are therefore as legally binding as any other contract, including those provisions regarding capital payments to outgoing partners
Tue 22 November
Tue 22 November
Whilst there are obvious benefits in incorporating a business as a limited company, not least the limitation of members' personal liability for the debts of the business, there are also a number of advantages of retaining a traditional partnership structure
Thu 8 September
Thu 8 September
The Records Management: NHS code of practice (Part 2) Annex D1 stipulates that “all types of records relating to children and young people” should be retained until the patient’s 25th birthday or 26th if the young person was 17 at conclusion of the treatment, or eight years after death
Tue 6 September
Tue 6 September
Employees can accrue and take statutory annual leave (5.6 weeks for a full-time employee) while on sick leave, regardless of whether they are receiving any income during this period or the duration of the sickness absence
Sat 3 September
Sat 3 September
If it is the case that the exclusion is intended to apply to all newly recruited cleaners from this point onwards, then in principle, there is no reason why you cannot exclude the new cleaner from the company sick pay scheme
Sat 11 June
Sat 11 June
The higher fee only applies to organisations with at least 250 employees. This is the case whether or not the organisation is a public body
Fri 3 June
Fri 3 June
Essentially, you can sell your interest in the building at whatever price you can commercially agree with both the incoming partner and the existing partners, subject to that price not including any payment in respect of goodwill
Thu 5 May
Thu 5 May
As a general rule when you enter into a contract you will be bound by its terms, even if you change your mind at a later date. However, the court can assist if you were led unwittingly into the contract, or if the terms you agreed were unreasonable or unfair
Fri 25 March
Fri 25 March
Commissioning consortia will be ‘contracting authorities’. This means that when they are considering entering into contracts for the provision of goods and services, they need toconsider whether there is a requirement to put the contract out to tender using one of the standard EU procurement procedures.

Ads by Google