Advice on becoming a partnership

[Marilyn Monroe]

My friend who also is a beauty therapist has asked me to go into business with her. I have always been a sole trader so how does it work with regards to finance?
I have been looking at salons for a while and have found two rather expensive tho, but through conversation realised we both eyed up the same premises?
Just wanting facts, advice and experience of partnerships from fellow geeks , thanks x

 

[dee]

i would never go into partnership with a friend .. or anyone really , lol
i have known loads of people doit and you will be surprised at the rate of how fast things change ... one wants one thing , the other wants something else .. next thing you hate each other and the business suffers
my advice .. by all means team up with someone but i would keep businesses seperate jmo xxx

 

[SJK]

You have two options. You could go in as a limited company, and both be shareholders. This is probably the safest way.

If you want to go the partnership route, you should get a partnership agreement drawn up or you will be bound be the definitions of the Partnership Act 1890. Be warned - as a partner you are liable for her share of debts as well as your share of debts.