Forums: Discussions for entrepreneurs and small business.

Two of us run a music  website and promote gigs, and we have recently started a record label. In line with this, it seems the right time to become ‘official’ and become a partnership or company or something, rather than just mates playing music. We’ve done our research, but are a bit baffled...We think we want to be limited, in order to not be personally liable for the debts.

For Limited Company, Limited Partnership and Sole Trader, I’d like to know the following:

1.       Do we need to pay ourselves a salary?

2.       Does the company/partnership need a business bank account?

3.       Will NI and tax be in addition to our current jobs and salaries?

4.       Do we need to submit accounts?

5.       Do the accounts need to be audited?

 

Hope you can help!

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Hi cesca,

For these type of question you really will want to talk to both a lawyer and accountant in your area.  Spend the money to at least get some professional consultation as it will be well worth it.  Also make sure you get everything in writing with your partner and be careful about what you sign.  These type of business transitions can be difficult and harmful if you do not take the time to protect yourselves.