Partnership vs employer/employee?

[KatyMac]

DD & her bf have set up a small business

Each are self employed separately

Are they best to be a partnership? If so will it cost loads to set up as one

Or should one of them employ the other?

The business is unlikely to become huge overnight and if they split up I imagine the customers would chose who to carry on with

Why am I asking the questions? Because they don't understand why a decision has to be made - "cant they just split the income"

You cant have 2 separate self employed running a single business - it's a partnership by default.

If you want it kept separate, one s/e person has to be "the business" contracting with customers and suppliers and the either employing or subcontracting work to the other.

Being a partnership shouldn't cost too much. Bank charges for a p/s bank account won't be any different to a sole trade bank account (or2), insurance shouldn't be different, accountancy fees should only be slightly more for the extra p/ship tax return- the main "cost" would be a solicitor to draw up a partnership agreement. All in, it shouldn't cost more than 2 separate self employed where you'd duplicate business bank accounts, insurance, accountants, etc etc.

Ah insurance might be the decider

One has it through a governing body so adding employee liability might be easiest

We will talk!