If you are consider forming a business partnership with a colleague or friend, there are a number of legal issues and implications which you need to address before you begin to trade. 

Partnerships share the control, responsibility and finances; this could be one other or several people, thus reducing the overall input one individual will give to the business. This can be a distinct advantage to that of a sole trader. 

A partnership adopts a different strategy, instead of one person owning the company; a partnership can consist of between two and twenty people.  In essence, this would mean that you would need to consider finding one or several people who you could trust unconditionally to take on joint or shared responsibility for the running of your business. Although this would mean that the profits and liability would be shared, a partner or partners would be able to inject fresh capital, as well as skill and ideas into your business enabling you to use this for further expansion and development.

Should you decide to look for a partner, you would need to consider if an ordinary or limited partnership would be the best for you business as the two roles indicated the level of liability and responsibility, the differences are outlined below:

Ordinary
The partner or partners would take on unlimited liability for any debts incurred by the business and all profits would be shared equally. Ordinary partners also take on equal responsibility and decision-making in the running of the business.

Limited
Limited partnerships accept limited liability to the amount invested, and whilst profits are shared equally the responsibility and control of the business lies with the ordinary partners. Limited partners are often seen as "Sleeping Partners" as they do not directly involve themselves with the company they are in partnership with.

Adopting a partnership, some considerations
Should it be decided that a partnership would prove the best way forward for your business, you would first need to decide how many partners  could to benefit the business.

• The partner or partners' abilities to drive the business forward
•  Leadership qualities and management experience
•  Level of specialist knowledge and expertise
• The level of trust associated with the partner

It is recommended that a partnership agreement be arranged to legalise the partnership, this will help to avoid or clear-up any disputes which may arise - i.e. profit, liabilities or responsibility share.