Partnerships
There are two types of partnership, a standard partnership or a limited liability partnership. Both link two or more people together in business however the liability and requirements for setting up vary.
A standard partnership is not too dissimilar to a sole trader, it has no legal status but simply links two or more self employed people in business. Therefore, each partner will need to register themselves as self employed to HM Revenue & Customs as you would with a sole trader and again comply to the legal requirements of the sector. The ongoing accounting requirements are also similar; however the partnership itself will need to complete an annual self assessment form in addition to each individual partner doing so as well.
Each partner will also be personally liable if anything goes wrong, however unlike a sole trader this liability should be shared equally between the partners.
It is worth noting that if either partner is withdrawn from the business the partnership must be dissolved instantly.