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A partnership is an association of two or more persons engaged in a business in which the profits and losses are shared in proportion to how the partners have agreed. The legal definition of a partnership is generally stated as "an association of two or more persons to carry on as co-owners of a business for profit".

A partnership is the same as a sole trader with all the partners sharing responsibility for managing the business. The same applies to any debts of the partnership, which are joint and several in that each partner is personally liable for all the debts with the exception of income tax which is self assessed on the individual partner.

In some cases, it may be necessary for a 'Deed of Partnership' to be drawn up. Whilst this is not required by law it can be useful to resolve disputes. You may also consider the option of establishing your business as a limited partnership.

KMA offer a comprehensive range of Accountancy and Taxation services to individual partners and the part- nership collectively. From Bookkeeping, VAT returns to year-end accounts and self-assessment taxation.

Prices start from £600 + VAT per annum for a two-partner business.
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