Some new businesses choose to set up as a limited partnership. This is a legal entity where partners – either limited partners or general partners – are formally involved in the new enterprise. In simple terms, limited partners are usually investors only, and general partners can make strategic and everyday decisions on behalf of the partnership. A business virtual assistant can help you with ongoing administration and task support.
What types of businesses form a limited partnership?
Any business can be formed in this way, particularly those where several people might be investing money, but do not require any control over the way the business is run. A limited partnership needs at least two people: a general partner and a limited partner, but you can have as many partners as you need.
General partners: General Partners are liable for any debts the business can’t pay. They can make decisions on behalf of the business and can control and manage the business on a daily basis.
Limited partners: Limited partners can invest money in the partnership when it is set up. They are only liable for debts up to the amount they have put into the partnership. They cannot remove their original investment and they have no control over the running of the business.
If you are planning on setting up a limited partnership, you may need some support. Many new businesses partner with virtual assistant administrative services, to help them get going. The formal setting up of the business includes:
- Choosing a name that falls within the guidance from Companies House. You can also use Companies House to check that your chosen business name doesn’t already exist. It may also be worth checking the trademark database to make sure you’re not copying an existing registered name or trademark. If you don’t want to take the trouble yourself, you can hire an external service provider to assist with business name verification.
- Deciding on your registered address. This must be a physical location – you can use your home address, but be aware that it will be publicly available.
- Listing your partners and the type of partnership for each.
- Registering with Companies House and HMRC. You should also register yourself with HMRC for self-assessment purposes – both for the partnership and for the individual partners – and, if you think the business is going to have a turnover of more than the limit set by the government per year, you should also register for VAT.
- Registering with HMRC will also allow you to receive your Corporation Tax Number (CTN) or an Employer Identification Number (EIN). More information on registration is available on the gov.uk website.
Your partnership will need to be clear about how it is going to work. This protects you and any other partners in the business. So you will need to draw up a partnership agreement, which sets out how you agree to operate. You may also want to produce a memorandum of association, and it is best to seek some legal advice for both of these documents. Your virtual assistant for business support may be able to help you find appropriate legal advice.
In fact, successful virtual assistants can help your new limited partnership with a wide range of tasks as you are setting up. These can include:
- bookkeeping, invoicing, credit control
- sales or marketing admin
- social media or email marketing
- to do lists, secretarial, email and diary management
- CRM or web maintenance and data entry
- event and travel planning
- making or taking calls
This means that your essential tasks are being covered, leaving you to get on with establishing your business. And of course you can build your virtual tasks as your business grows.
If you’re thinking about starting a business and you’d like some support from a business virtual assistant company, feel free to call us on 0800 994 9016 or use our contact form in the menu above.