JP Egan & Company

Why should you choose a Partnership for your business?

Running a business as a partnership offers a unique combination of shared responsibility, resources, and flexibility. 

Partnerships allow you and your partners to pool your skills, capital, and expertise to grow the business together. However, navigating the financial and tax complexities that come with this structure requires careful planning and expert guidance. 

At JP Egan & Company, we provide comprehensive support to ensure that your partnership remains compliant, profitable, and well-positioned for future growth.

JP Egan & Company

Advantages of a Partnership:

Operating as a partnership offers a number of benefits, but there are also key responsibilities to consider. Here’s a breakdown of what makes partnerships appealing and what you need to watch out for:

  • Shared responsibility and resources: Partnerships allow you to share the responsibility of managing the business and leverage the combined skills, knowledge, and capital of each partner.
  • Flexibility in management: Unlike a limited company, a partnership offers flexibility in how the business is run, with partners having more direct control over decision-making.
  • Simplified setup and lower costs: Setting up a partnership is straightforward and generally involves fewer formalities and lower costs compared to limited companies.
  • Pass-through taxation: Profits and losses in a partnership are passed through to individual partners, meaning the business itself doesn’t pay tax, but rather the partners report their share of profits on their personal tax returns.
  • Stronger collaboration: Partnerships provide an opportunity to work closely with individuals who complement your skills, which can accelerate business growth and innovation.
JP Egan & Company

Disadvantages of a Partnership:

  • Unlimited liability: Like sole traders, partnerships generally come with unlimited liability, meaning partners are personally responsible for business debts and obligations.
  • Potential for disputes: Since decision-making is shared, disagreements between partners can arise, which can affect business operations and relationships.
  • Shared profits: Unlike sole proprietors, partners must share profits, which may not always align with the contribution of each individual.
  • Less attractive to investors: Partnerships may find it more difficult to attract external investment compared to limited companies, as investors often prefer the limited liability structure.

Simplifying the Complexities of a Partnership

JP Egan & Company

How can we help

At JP Egan & Company, we understand the nuances of partnership accounting and tax obligations. Our team provides expert support to help your partnership navigate complex financial decisions, stay compliant with tax regulations, and plan for future growth. We help you optimise profits, reduce risks, and ensure your partnership structure is operating as efficiently as possible.

01.
Tax Returns & Self-Assessment:
We manage your partnership’s tax filings and self-assessment, ensuring that all profits and losses are properly allocated among partners and reported correctly to the tax authorities.
02.
Partnership Agreement Review:
We provide advice on drafting and reviewing partnership agreements, ensuring they clearly define roles, responsibilities, profit sharing, and dispute resolution mechanisms.
03.
Bookkeeping & Accounting:
We handle day-to-day bookkeeping and accounting to ensure accurate financial records, monitor cash flow, and provide you with clear insights into your business performance.
04.
Profit Distribution Advice:
We help you determine the most tax-efficient way to distribute profits among partners, minimising tax liabilities while ensuring fairness.
05.
VAT Returns:
If your partnership’s turnover exceeds VAT registration thresholds, we’ll handle VAT registration and ensure your returns are filed on time, keeping your partnership compliant.
06.
Partnership Planning:
We assist in long-term planning for your partnership, helping you manage risks, expand your operations, and plan for succession or exit strategies.

Our Simple 3-Step Process to Switch:

JP Egan & Company

Switching Accountants is Easy

Changing accountants doesn’t need to be complicated or stressful. At JP Egan & Company, we’ve made the process seamless, with no tax implications. Our experienced team will guide you through every step of the transition, ensuring there’s no disruption to your business operations.

01.
Get in Touch:
Contact us for a free initial consultation. We’ll understand your needs, explain the process, and discuss how we can help your business.
02.
Talk to an Expert:
One of our experienced accountants will work with you to review your current setup and offer advice on how we can best manage your financial affairs going forward.
03.
Get a Quote:
We offer transparent, fixed-fee pricing based on your needs. You’ll know exactly what to expect — no hidden costs, just the services you need to succeed.
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