Best business type for a partnership?

Rob WattsRob Watts subscriber Posts: 1 Member

I'm looking for some advice on the type of business to setup - eg. partnership, LLP partnership etc

A bit of background - there are five of us (3 UK-based journalists, 1 Canadian-based journalist, 1 German-based photographer) who have recently started a new publication focused on motorsport. We have launched a website, a podcast, and a Patreon page which we are already generating income from.

Understandably, there are costs involved which so far we have paid from our own pockets, and as these costs grow and our income increases, we'll soon need to consider turning this into an actual business - but I'm unsure what is the best route to take at this point.

As there are five of us (who are all freelancers) with an equal say in how things are run, our first though was a business partnership. I'm wondering though as two contributors are based outside of the UK, would this change anything?

Comments

  • Priya MalhotraPriya Malhotra subscriber Posts: 17 Bronze Level Member

    Types Of Eligible Partners

    There are a set of rules upon who can become a partner at a Partnership firm. Here’s the list:

    • Firstly, any individual who’s eligible can become a partner.
    • Secondly, a partnership firm cannot be a partner in another partnership firm as an artificial legal person. But, the partners of that very firm can be partners in other firms too.
    • A Private/Public Limited company can be a partner at a Partnership firm as these companies are artificial legal persons.
    • Lastly, unless the Trustees of that firm are bound by the company bye-laws they can become partners in the firm as well.

    Types Of Partnerships

    Before you carry out the registration of partnership firm you must know the type of partnerships. Here’s the list you should thoroughly follow:

    • Firstly, Partnership at will is a type of partnership that can be dissolved by any partner at any time. Moreover, these partnerships don’t have a binding document or agreement to hold the partnership together. Such partnerships are not formal.
    • A Fixed-term partnership has a fixed term for the partnership. Thus when the term ends so does the partnership. Although, the contract can be extended.
    • A Particular partnership is struck when the two involved parties want to carry out only a special venture. After which the partnership dissolves automatically. Moreover, it’s like collaborating on a project.
    • Lastly, General partnership is the most simple partnership which can be formal or not depending on the partners.


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