What is a "partner"?

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Hi

I am looking into setting up a company in Edinburgh, and from what I’ve seen online, an LLP would probably make the most sense for me as far as company structures go. I see instead of shareholders, they have got partners. What exactly is a partner? What do they do, and what role do they play in the company?

Answers

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A ‘partner’ is someone who jointly owns and runs a business partnership with one or more other people. Partners are sometimes referred to as ‘members’ of a partnership.

You can be a partner in a general partnership, a limited partnership or a limited liability partnership (LLP). An explanation of the differences between these three type of partnerships can be found here.

As a partner, you are usually responsible for investing in, and running, the business. You will be entitled to receive a share of any profits the partnership makes. These profits will be taxed through Self-Assessment so you will have to register with HMRC as self-employed.

If you are a designated member of an LLP, you will also have additional duties, such as:

  • Registering the partnership for Self-Assessment and VAT
  • Reporting changes to Companies House
  • Filing annual returns with Companies House
  • Ensuring all partners complete their individual Self-Assessment duties
  • Completing partnership tax returns for HMRC

More information about LLPs is available here.

a year ago
 

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