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Business set up query

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I am currently self employed.

my mother has asked me to join her as a partner in a fundraising shop that she wants to take over from a friend who is giving it up (she is sole trader). The shop receives donations And a percentage of the profit goes to charity. I am completely confused of what business structure to use & how to register correctly

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By Anonymous.
18th Sep 2020 11:29

The only sensible advice is that you should speak to an accountant. There are a large number of questions which would need to be asked and answered before anyone (competent) would be able to make an informed proposal as to how the arrangements should best be organised.

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By paul.benny
18th Sep 2020 15:26

+1

Some things to consider
- if you and your mother are co-owners, what happens if you disagree about something?
- how much do you each expect to earn from this shop? Will you both be a volunteers or do you expect to receive some salary or share of profits?
- what liabilities might you have if the shop struggles - eg rent, business rates?
- who are funds being raised for? Presumably a charity - what will be the relationship with them?
- why is the current proprietor stepping down? Will you be paying them anything? Will you be taking on any of their liabilities - eg rent that was unpaid during lockdown.

There is general guidance on gov.uk about starting a business. Take a look at this for some other questions you should be asking/things you may need to do.

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By Paul Crowley
18th Sep 2020 17:14

+2
Partnerships are a bit out date
All risk and no benefit

In the last 4 years only 1 client chose partnership as the trading vehicle

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