A partnership is a form of trading in which two or more people agree to carry on business together. It is not registered at Companies House in the way that a limited company is.
A partnership starts as soon as the partners begin trading – whether they have agreed a written Partnership Agreement or not. In recent times, the Government has introduced a Limited Liability Partnership. An LLP is a separate legal entity which needs to be registered at Companies House and gives the Partners limited liability against debts and losses in the same way that a company operates. However, an LLP is taxed in much the same way as a traditional partnership and has become a popular vehicle for professional practices and property investment firms.