Limited company guide
General partnerships compared with limited companies on personal liability, taxation of profit shares, filing obligations, credibility and bringing in new owners.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
Regulated by
Regulated & AML supervisor
AAT fellow member
Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityIn a general partnership, partners are jointly and severally liable for the debts of the business. One partner's commitment binds the others, and personal assets are exposed.
Liability is the first difference
How the tax compares
Filing and privacy
Bringing people in and getting out
In a general partnership, partners are jointly and severally liable for the debts of the business. One partner's commitment binds the others, and personal assets are exposed.
A limited company separates business debts from personal assets, subject to personal guarantees you sign and to wrongful trading rules if the company continues while insolvent.
Partners pay income tax and Class 4 National Insurance on their profit share as it arises, drawn or not, at 20%, 40% and 45%. There is no way to retain profit at a lower rate.
A company pays corporation tax at 19% to 25% and the owners pay personally only on extraction. Where profit is reinvested in stock, equipment or hiring, the company usually wins clearly.
A partnership files an SA800 return and each partner files their own Self Assessment. Nothing goes on a public register, so results stay private.
A company files accounts and a confirmation statement publicly, though small company and micro-entity filing options keep turnover and profit off the public record.
Admitting a partner means a new profit share and an amended agreement. Admitting a shareholder means issuing shares, with the option of different classes, options and investment reliefs like SEIS and EIS.
Selling a share of a partnership is harder than selling shares in a company, which is why businesses planning an eventual exit usually incorporate well beforehand.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Almost always, where liability matters. An LLP gives limited liability with the same transparent taxation, at the cost of public accounts and Companies House filing.
Yes. The trade and assets transfer to a new company, which triggers capital gains, stamp duty and VAT considerations and should be planned in advance, including incorporation relief where available.
Not legally, but without one the Partnership Act 1890 applies, including equal profit shares and dissolution on a partner leaving, which is rarely what anyone intended.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
