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Partnership or Sole Traders ??

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  • 29-07-2008 10:47am
    #1
    Snibs08
    Closed Accounts Posts: 2 ✭


    If someone has any advice on the following Id be grateful.

    3 people looking to start up hair & beauty business together. 1 person responsible for hair , 2 people responsible for beauty. Want to trade under same name , share the lease ( and premises ) but operate as seperate individuals , ie person doing hair keeps all that revenue , people doing beauty keep all their revenue.

    How practical is this really ?? I would have thought that to operate this way they would need to be set up as 2 separate companies. I think they would be able to share the lease , but not sure about the company name.

    Advice wise , is it better ( financially as well as everything else ) to operate a 3 way partnership and just share the hi's and low's or set up 2 different business. One of the people involved is my sister and I just dont want to see her make any mistakes.

    All advice very much appreciated.
    :cool:


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    #2
    rummy
    Closed Accounts Posts: 26 ✭rummy


    Firstly, I have deregistered my company recently as it was too expensive to run and the monthly reporting was annoying. However, I bought my company originally 'off the shelf' for about €480 (www.cfi.ie). You could set up the business as a company and then lease the chair to the relevant hairdresser and the relevant space to the beauty person -thus enabling them to have their own revenue stream. The company has separate legal entity from the directors.

    Alternatively you could set up as a partnership - 3 people share in the profits and losses. You need to register the business name (http://www.cro.ie/en/business-registration-business-name.aspx) no matter what legal entity you decide. I would recommend that you write a partnership deed outlining the responsibilities of each partner and what happens if someone becomes incapacitated.

    What is also useful are the business plan workbooks from any bank i.e. AIB; BOI etc which covers legal forms.

    Hope this helps and the more advice you get the better!!!


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