setting up a partnership

**jumpsystems** · 24 March 2004, 12:01

This sounds like a simple joint venture arrnagement. Your accountant should be able to advise.

**jmiom2004** · 24 March 2004, 22:29

Partnerships..

As far as I remember if you form a partnership it ain't LTD.

You and your partner become liable for eachother's debts incurred in the running of the company. It sounds like you trust eachother, but if you go bust you could lose everything.

I would be careful as I have seen rich men become poor men, due to having been a partner in the boom/bust of the 80's.

But a good accountant will outline all the options and benefits and pitfalls of them both.

**ossetc** · 24 March 2004, 23:56

partnerships..

thanks for replies to date.

I'm not keen on the basic partnership deal due to the shared liability.
But I've heard of the Limited Liability Partnership, which appears to be a halfway house to a Ltd Co.
From what I've read to date, this would protect us give flexible structure.
I think Ltd Co's can be members of a LLP, so thats double isolation from shared liability, is this true?

As for joint ventures, how are these structured and administered between Ltd Co's???

It's early days yet and we want to sound out some experienced contractors on the pro's and con's of each subject, before we visit the accountant and part wish our hard earned cash.

So far our option are:
New Ltd Company
New Limited Liability Partnership
Joint Venture

**amcdonald** · 26 March 2004, 23:19

Another option would be to use a ltd as a shell company, and subcontract or substitute the work to yourselves as Sole Traders.

Less to untangle if all goes wrong than a Partnership.

Just a thought anyway.....

**Liddle Feesh** · 6 April 2004, 21:55

Limited Liability Partnerships

I'm afraid you have been poorly advised.

A further option for you is a "Limited Liability Partnership". A nice half-way house between partnerships and ltd companies.

I would have done this with my partner, but the option wasn't around when we founded!

LF

**Liddle Feesh** · 6 April 2004, 21:57

Ooops

Sorry, must be the wine talking.

Seriously though, unless you want them (angry clients) coming for your house, car, personal finances, etc... go the limited liability route. Get insurance too - but you REALLY don't want to be sued.

Case and point - Hatfield Railway disaster. Shít always rolls down, from the top to the bottom. In this case it was the Railway Contractors that got hit. But in any organisation, the end worker always lands the blame. Stay protected.

**Liddle Feesh** · 6 April 2004, 22:09

Safe Sex

Limited liability is like practicing safe sex with clients. Although, I wouldn't want to further this anymore!

**www 1staccountancy biz** · 7 April 2004, 07:49

Re: Safe Sex

Few other things to consider include share structure, who takes the contracts should the relationship dissolve and also the restraining clauses in your current contract which normally states you cannot go near a client for 12 months.

It's certainly a good idea & worth taking further advice.

**ossetc** · 7 April 2004, 22:59

safe sex advice

Can you recommend a good source for this type of safe sex partnership?
Most accountancy firms seem to push only Ltd Co solutions.

setting up a partnership