How do I change a Soletrader into a Partnership or vice versa?

kba-02070

How do I change a Soletrader into a Partnership or vice versa?

17th June 2004

How do I change a Soletrader into a Partnership or vice versa?

Note: A Partnership with only one involvement is seen by PTP Accounts as a Soletrader.

Soletrader to Partnership

Select:
Client | View
Change the ‘Type of business’ to ‘Partnership’ and click [Save]
(Click [Yes] to continue).

Select:
Edit | Partners | New
Add the new partner (make sure if a separate capital account is needed they are given an order number) and give them a start date (use the date that the business became a partnership).

N.B. No other dates are needed and nothing should be changed from when it was initially a Soletrader.

Finally select Edit | Partner Profit Shares
Set the shares as required, for the share date relating to the Sole trader, 100% would be allocated to the proprietor as they were at that point the only involvement.  The profit should then be split as required for the share date relating to the partnership.

Partnership to Soletrader

Select:
Edit | Partners
Select the partner that has left and click [View] and enter and end date in the ‘To’ field and click [OK].

Select:
Edit | Partners Profit Shares
Select the new ‘share date’ and click [Shares] and set 100% to the remaining partner (now proprietor).

N.B. The business type does NOT need to be changed (A one partner partnership will be classified as a soletrader as mentioned above).