Ltd, LLP or LP ?

I want to create a software company in the UK. I will try to sell a software I am developing with another associate. We'll start with a small investment (2000 pounds maybe).

We will be 2 equal holders and active managers.
I went through http://en.wikipedia.org/wiki/Companies_l... but it's not sure which form of company is the best for my need?

I found the following list of types :

1.Public Limited Company (PLC)
2.Private company limited by shares (Ltd, Limited)
3.Company Limited by Guarantee
4.Unlimited Company
5.Limited Liability Partnership (LLP)
6.Limited partnership (LP)
7.Societas Europaea (SE): European Union-wide company structure
8.Royal Charter (RC)
9.Community interest company

I went through wikipedia and the companieshouse website, but it's not clear which one is the best for my need.

I'm hesitating between 2, 5 and 6.

Any advice ?

You need a limited company. An LLP is normally used for accountants, solicitors and investment companies, not trading. An LP is even less suitable and the rest are for entirely different purposes. The fact that you are 2 equal partners does not mean you need a partnership format. You simply need to both act as directors and take an equal number of shares. As you are on an equal footing you should ask a solicitor to draw up a shareholders' agreement between the 2 of you setting out what happens to the company if you have a falling out and one partner wishes to leave or sell his shares, or the company becomes insolvent etc.

My husband has started an electronics company and has been working for 3 years, best decision ever! He is toying with expansion and going Ltd. p.s. started with partner, did not work out, becareful, even though you probably do get on.

XX

most are variations of 2......2 is the best for yourselves.

Certainly go for the limited liability option!

There are differences in the types of tax paid by a limited company and a limited liability partnership. There are also differences in set-up costs and method.

A spot of professional advice might be a good investment, rather than finding out later that another option would have been better for your particular circumstances. It's impossible to advise accurately without knowing these.

Good luck!