What is a Partnership?
A partnership is where two or more people come together to carry on a business, trade or other activity. There are two forms of partnership in the UK, traditional unincorporated partnerships and limited liability partnerships (LLP).
The legal status of a traditional partnership is similar to that of a sole trader but instead of having one owner, there are two or more proprietors involved in running the business, each having a stake in the ownership of the that entity.
Limited Liability Partnerships vs. a Traditional Partnership
A Limited liability partnership is different from a traditional one. LLPs are incorporated at Companies House, have a registered office and as their name suggests, enjoy the protections of limited liability.
The document will focus on traditional partnerships.
As is the case with a sole trader, a partnership is an unincorporated business. It is not (neither is it required to be) registered at Companies House and has no obligations to maintain statutory records, prepare and file statutory accounts or to submit an annual return to the Registrar of Companies.
This kind of partnership structure is usually found within firms of solicitors, surveyors and accountants; although in recent years some practices within these professions have changed their status to an LLP.