The paper "Setting Up a Business as a General Partnership or as a Limited Liability Company" is a wonderful example of an assignment on business. Under the English law, the partnership is defined as a relation in which persons carry out a business with a common view of making a profit. In England, wales, and North Island, the partnership is not viewed as a legal entity separate from its owners. Despite this, the partnership is viewed as a person for the purposes of the Taxes Act. In Scotland, a partnership has a legal entity distinct from the partners.
In Scotland, this can only be overridden for the purposes of CG. The limited partnership comes into existence through the Limited Partnership Act of 1907. This is where at least one of the partners comes with a restriction on the amount of liability or debts responsibility to the firm instead of having unlimited liability. Limited liability partnerships are formed under the Limited Liability partnership Act 2000 (Adams, 2013). The partnership is able to combine the flexibility of a general partnership with the benefits of limited liability.
This report gives advice to three friends what they should consider when starting their business as a general partnership or limited liability company. Analysis of the topic Rules for partnership Before venturing into any form of partnership, the first thing to consider is the existing rules. These rules determine the existence of a partnership. The partnership is formed through a joint venture. Despite having joint tenancy, property, ownership, the partnership must be sharing the profits made by the venture. There must be more than sharing gross returns since the partners must be having a common right or interest on the property where the returns are obtained from.
The prima facie evidence of partnership is the receipt of the share of the profits (GOV. UK, 2015). This is only if the person receiving the share is not a widow of a deceased partner, not owed by the business, is an agent or servant being paid through a contract of remuneration from profits or receipt of annuity through goodwill (GOV. UK, 2015).
GOV.UK., Employment status, Retrieved 7th August 2015 from, https://www.gov.uk/employment-status
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