Partnership

Partnership

This type of entity is very like the sole trading entity. A business produces income and all expenses incurred to create that income is deducted. The end profit is then distributed to the partners, there can be as few as two (2) and up to twenty (20) partners. Partnerships have been governed by the Partnership Act 1981, which can be used as a good guide when setting up a partnership, especially when the partners are not related in marriage.

As yet, partners are not required to make compulsory superannuation contributions on their own behalf and they are not required to cover themselves with work cover insurance.