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:
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.
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