Setting up in Business as an Ordinary Partnership
- Price: £3.60
- Published: March 2015
- Type: Business Information Factsheet
- Format: PDF
Partnership is the legal format commonly chosen when two or more sole traders start up in business together. It is legally defined as two or more people 'trading in common with a view to profit'.
A partnership can be set up as an 'ordinary' partnership, which does not have to be registered with Companies House, or as a limited partnership or a Limited Liability Partnership (LLP), both of which must be registered with Companies House.
This factsheet explains the steps to take when setting up an ordinary partnership, including drawing up a partnership agreement, registering for tax self-assessment and choosing a business name. It also outlines record-keeping requirements.
It does not cover LLPs as these are covered separately in BIF 365, An Introduction to Limited Liability Partnerships (LLP).
For an overview of the different types of legal status a business can have, including information about different types of partnership, see BIF 32, Choosing the Right Legal Status for your Business.