What is the difference between sole trader status and partnership?

A sole trader enjoys no distinct status between themselves as an individual and in their trading capacity.  In Scotland partnerships are deemed legally distinct from their individual partners.

What is a limited liability partnership?

So called “LLPs” are, unlike ordinary partnerships, able to restrict liability of individual members/partners for business debts and liabilities.  To be valid a limited liability partnership must be set up in accordance with strict formation rules and registered with Companies House. 

When should a business incorporate as a limited company?

There is no hard and fast need to incorporate a limited company but as businesses grow it is often felt preferable to incorporate. A Solicitor can advise circumstances where incorporation may be considered.

What is Companies House?

This is a cover-all phrase used to describe various offices through the UK where the Register of Companies has a presence.

For a partnership to exist does there need to be a written Partnership Agreement?

No, a partnership can exist "at will" and without any formal Partnership Agreement being in place.  It is, however, almost always better that a partnership should have even a basic Partnership Agreement in place. 

What is a trading name?

A trading name is a name distinct from that of an individual, partnership or other entity carrying out the trading activity. 

I want to change the name of my business.  How do I do this?

For a sole trader it is very straightforward provided nobody else is already using the name.  For partnerships and limited companies it is more complicated and if a limited company wants to change its registered name there are particular formalities involved. 

I want to relocate my business.  Is there anybody I will need to tell?

You should always advise HM Revenue & Customs, your bank and any significant suppliers and contractors.  

I have been told that a company owing me money has gone into liquidation.  What does this mean?  Will I be able to get my money back?

Liquidation is a process which takes place when a company has become insolvent (unable to pay its debts) and cannot trade its way out of difficulty.  The prospect of recovering money due in a liquidation situation varies from case to case.  Sometimes a creditor will receive back a dividend of so many pence in the pound for what they were due and in other cases, unfortunately, creditors will receive nothing.

Trading in a partnership how can I protect my personal assets from business losses? 

The most effective means is to use limited liability partnership structure.  In most cases, however, individual partners bear unlimited liability for their business debts.

I am a sole trader and want to plan for my retirement.  What is the best way to plan for succession to my business?

Must will depend on the nature of the business and whether there is some succession structure already in place.  Generally the longer one prepares for succession the more likely a successful outcome can be received.

What is corporation tax?

This is the tax levied by HM Revenue & Customs on company profits.

How are sole traders and partnerships taxed?

Sole traders are taxed according to their personal tax code and on all business profits as and when arising.  Partnerships are not taxed separately and generally the partners in a business are liable for UK income tax on any share of profits attributed to them.