Why Should You Consider A Business Partnership?

A business partnership is born when two or more people join forces to establish a business venture. It is a common form of business organisation to start in the UK, although it's not as popular as the sole proprietorship and limited company. An FSB survey revealed approximately 384,000 business partnerships, making up 7% of the UK's private sector business population. Perhaps you wish to go into a partnership but aren't sure if it's suitable or lucrative. In that case, here are some benefits to help you make an informed decision. 

It has fewer legal obligations
If you don't want to deal with lengthy and cumbersome legal processes, a partnership is a suitable business option. Partnerships are generally less formal than the limited liability companies, which extends to legal obligations. For instance, it doesn't require a Corporation Tax return, although you're still required to keep track of your income and expenses. You and your partner only need to file self-assessment tax returns with details of their profits derived from the partnership. Likewise, you must send a partnership tax return to the HMRC. Again, you aren't required to submit a confirmation statement and Companies House forms, like a limited company, saving you stress. Besides, you need not worry about keeping statutory books and other business records. What's more, it's relatively easier to dissolve a partnership business without getting into messy legal battles, giving you the freedom to leave a partnership at your discretion. However, you may get involved in legal processes to leave a partnership if a formal agreement was present at the time of establishment. 

It is relatively easy to establish 
It is relatively easier to create a business partnership. Perhaps you wish to start a venture with your friend or acquaintance. In that case, you don't need to register with the Companies House, as you create the partnership verbally. Moreover, registering your business at the HMRC isn't a tedious process, and applying for self-assessment can be done online. Despite this, it's still advisable to put a partnership agreement in place. This is to protect your investments and define your rights and obligations. Moreover, it also states the rules of engagement to help settle disagreements between you and your partners, reducing misunderstandings and ill feelings. Therefore, it's best to leverage professional contract writing services for a well-crafted partnership agreement. 

Better access to experience, skills, knowledge and contacts
Indeed, two or more heads are better than one, and partnerships prove this. While you may have your knowledge and skills, other people might possess certain traits needed to push your business to the next level. Therefore, joining forces with other people becomes practical for the best results. Besides, you get to apportion tasks based on your expertise to mitigate stress, unlike sole proprietors who perform tasks independently. For instance, a partner with financial skills can handle the company books while another with marketing skills can head the business's marketing campaign. As a tip, look for partners with complementary skills for your venture and ample financial stability.