Deciding which structure is best between a partnership and a company will be dependent on a range of different issues.  Income belongs to the partners in a partnership and so they are entitled to take their remuneration straight out of the partnership profit.  Whereas income in a company belongs to the company and the shareholders take their remuneration by way of dividends.  A company has to be registered at Companies House (as well as HMRC) and will have to publish annual accounts and make regular filings, whereas a partnership only has to register itself with HMRC.  A company has limited liability. This means that if the company is sued or owes any debts, the only thing that can be recovered is the company assets and not a shareholder’s personal assets. With a partnership, your personal assets are on the line as you are personally liable. In addition, there are also tax benefits to both. It is best to take advice from an accountant on what is the most tax efficient way of running your business.