Decision Makers Guide - DMG36003

Particular kinds of self-employment: Business partnerships

Business partners are entitled to arrange their business affairs to the best advantage as regards the division of profits, the SS scheme and income tax law. A Partnership Agreement may be entered into whose terms might include

• capital to be contributed by each partner

• ratio in which profits (or losses) are to be shared

If there is no agreement about sharing profits (or losses) the decision maker should share the profits (or losses) equally among the partners.