With the company I am working with closing down a few of us want to take over the customer base.
There are 4 of us in total that form the service team and 2 of us have done up a business plan and got approval from the bank for a loan and the customers have said they will stick with us.
What would be the best way to setup this? A limited company or a partnership?
One of the lads has setup a partnership with his wife and he and his wife have signed for the loan. At the moment he intends to hire the 3 other (including myself) as employees. He has asked me to replace his wife in the partnership once the business gets going - would I then be liable for the bank loan?
If I become a partner I know I would also be liable for any debts that we create but I think we have enough sense not to create any problems -is this the only advantage of a limited company or is the tax cheaper?
Can some explain the taxation of a partnership in relation to drawings?
There are 4 of us in total that form the service team and 2 of us have done up a business plan and got approval from the bank for a loan and the customers have said they will stick with us.
What would be the best way to setup this? A limited company or a partnership?
One of the lads has setup a partnership with his wife and he and his wife have signed for the loan. At the moment he intends to hire the 3 other (including myself) as employees. He has asked me to replace his wife in the partnership once the business gets going - would I then be liable for the bank loan?
If I become a partner I know I would also be liable for any debts that we create but I think we have enough sense not to create any problems -is this the only advantage of a limited company or is the tax cheaper?
Can some explain the taxation of a partnership in relation to drawings?