Partnership vs company nz
Most businesses in New Zealand are sole traders, companies , or partnerships. While there are no great barriers in New Zealand to becoming a sole trader, starting a partnership or a company , it still pays to think about why you’re doing it and which choice will best suit you. However, the costs and formalities of establishing and operating a partnership are usually less onerous than for a company. Partnership income can be split between the partners in fixed proportions. From a tax perspective, if you operate your business as a partnership , each partner ’s income is taxed at progressive individual tax rates. Can a partnership be a limited company? What is a partnership partnership? How can you distinguish between company and partnership? Many small businesses in New Zealand , including farming businesses, carry on business as a partnership. One reason for this is because they are relatively easy to set up, compared to other types of business entities, such as a company.