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When 2 or more people go into business together it is a Partnership. There should be an agreement on how to split profits and who does what (essential when a partnership splits up). Simply advise HMRC and it is set up. It is easy to join a Partnership, and to leave, without worrying about shares etc. The way it is taxed is not so simple. It is less flexible than a limited company - you can’t move income to a later year to save on tax, and there is no limited liability, meaning that if one partner incurs debts in the business, then all partners are potentially liable - called joint and several liability. Find out more at www.ams-accountancy.co.uk REF: F003