Lay My Hat

My Parents and I have recently inherited a property and are investigating letting it out as a Holiday Let.

This site has been a goldmine of information for us, but one answer that I cannot find anything about is what type of business to register as?

Any advice around the options, and what have you all done?
Ltd companies
Partnerships
Limited partnerships
Limited Liability partnerships.

Thanks in advance

My husband & I jointly own 2 holiday lets and haven't registered as any of the types of business you mention. We're both self-employed. I'm not sure if there's any benefit in setting up a formal business for a single holiday let? Especially if you're going into it with family members.

Each has significant pros and cons and will depend on your actual situation, the legal ownership of the property, the ownership of the rental business ( not necessarily the same thing) and your respective tax positions.

And 101 other variables (for example what happens if your parents want out or you do. There is a big gap between the dream of running a holiday let business and the reality)

Getting it wrong could cause a lot of grief so it would be worth paying for an hour or so with a good accountant to make sure you get it right.

A limited (Ltd) company has one or more members, also called shareholders or owners, who buy in through private sales. Directors are company employees who keep up with all administrative tasks and tax filings but do not need to be shareholders. A limited company is its own legal entity. [which means it can act in its own right and (with exceptions) takes on the responsibilities of insolvency instead of its members]

A partnership is generally stated as "an association of two or more persons to carry on as co-owners a business for profit" (Revised Uniform Partnership Act § 101).

A limited partnership is a business with more than one owner, including at least one general partner and at least one limited partner. The general partner is in charge, making business decisions and taking personal responsibility for the business’s debts and lawsuits.

A limited liability partnership (LLP) is a type of partnership where all partners have limited liability [the same as happens with a Ltd company]. All partners can also partake in management activities. They also have a fiduciary responsibility to act in the best interests of other members as well as the venture. ['fiduciary responsibility' means a duty of care greater than the normally expected duty of care.]

Thank you Google!