Setting up an accounting practice

Hi all,

I am an ACCA and an ICAEW member working for a Tier 1 bank in the city of London as a Financial Controller. I have a couple of friends, relatives who have approached me to provide them with basic accountancy/taxation related services, eg: drafting financial statements, doing self-asessment returns, CT600 returns, etc. Prior to joining the bank I was working in a small practice in London where I gained all the experience of dealing with SMEs.

I am now seriously considering setting up my own practice (probably with a friend who is also an accountant) on a part-time basis and initially working from home. I hope I will be able to get my practicing certificates from either of the accountancy bodies relatively easily. Now the question I have is whether I should proceed with setting up a limited company or is partnership the best way forward ? Any tax gurus or people in a similar situation out there who can advise me as to which route is better for a business like an accountancy practice ?

Regards,

Malik