If you have decided to begin a new business and you have someone who is going to start that business with you, then you may want to consider forming your business as a partnership. If you were to start the business on your own then a sole trader option may be better. However, if you have another person or more who wants to go into business with you and you are not yet ready to set up a limited company, a partnership is a better option and for many reasons.
A partnership is simply two or more people who own and operate a business together. Partnerships are not required to have separate legal statuses. If you want to create a unique legal entity then a limited company may be best. You can also form a limited company through one of your partners in the partnership.
When you form your partnership, one partner is required to be the nominated partner. This person is responsible for registering your new partnership with HMRC. HMRC registration can be done online or through a company formation agent. The partner who is designed will be registered with HMRC for self assessment tax.