Partnership - has anyone set one up personally

Mutant_Fruit

Just looking for someone who can tell me what are the legal issues about setting up a partnership. What documents (if any) that have to be filled out at the end of the year.

I know nothing about business or setting up a partnership. All the websites that i've been linked to seem incredibly complicated, often listing over a dozen forms that have to be filled in and sent out, and its all really confusing.

Is there anywhere i can go and talk to someone who can tell me what i have to worry about after i set up, and what i actually have to do to get set up?

antoinolachtnai

No, I've never done it, and unless you are an accountant or a solicitor, or have been given expert tax advice, neither should you.

Trading in a partnership can be extremely hazardous, because you can make yourself liable for the actions and omissions of your partners, and limit your ability to control the business as a whole. (This is much less the case with a limited liability company.)

Solicitors' and accountants' firms are obliged by law to trade as partners. Some music groups also trade as partnerships, including, famously, the Smiths, but this is usually more by accident than by design. (See for example, this article: http://archives.tcm.ie/businesspost/2000/08/27/story875178038.asp) You will come across small firms trading as partnerships, but again, this is generally the result of informal arrangements rather than a clear plan.

Avoid forming an informal (but nonetheless legal) partnership like the plague. Go and see an accountant, who will put you on the right road to incorporating a limited company or trading as a sole trader. If you still really want to go the partnership route, a long discussion with a solicitor experienced in the area will be in order.

If your business isn't substantial enough for it to be worth consulting an accountant, forget about the whole partnership idea and just keep things simple by trading as a sole trader.

is_that_so

Yes I agree about partnerships. They are very specific. Have a look at the CRO definitions of business types.

http://www.cro.ie/template_generic.asp?ID=1&Level1=1&Level2=0

antoinolachtnai

The stuff on the CRO site is about limited partnerships. As far as I know, a general partnership can be created without being registered. But it's a very complicated area.

Mutant_Fruit

Right. I think setting up as a sole trader, and then "hiring" my friend would work better due to what ye said. Now, to find the time to go visit someone who can talk to me about this. I wish i wasnt so clueless Is there anywhere in town that'd do this for free? Or am i looking at spending a few quid to get the info i need?

Also, care to recommend any people/places in particular?

is_that_so

Mutant_Fruit wrote:

Right. I think setting up as a sole trader, and then "hiring" my friend would work better due to what ye said. Now, to find the time to go visit someone who can talk to me about this. I wish i wasnt so clueless Is there anywhere in town that'd do this for free? Or am i looking at spending a few quid to get the info i need?

Also, care to recommend any people/places in particular?

Check this out for starters

http://www.basis.ie/topics/index.jsp?topicsType=LifeEvents&parentKey=WCList;id-41711&language=&Abstract=

And look into .....

1. Finding a friendly accountant
2. If you hire your friend both of you can be sole traders, although you might need to become a company. Company registration is more difficult but plenty of people who will do it. For example:
http://www.company-formations-ireland.com/index.html
Will cost €400 or so. Company route may also mean PAYE and PRSI.
3. You can register a business name for €30
4. Register for VAT at least(if you expect to sell and receive goods/services >€25K p.a.). Do the tax later. All very easy to do. Contact Revenue
5. Go to Fas about Start your own Business courses
6. County Enterprise boards - friendly people. Google for them
7. Any of the bank web sites


Best of luck