Best option for IT freelancing Couple

[ado]

Hi,

My partner and myself have decided to start contracting in IT. So far we are at the early ( and frustrating) stage of dealing with agencies trying to get our first contracts. We still haven't decided how we are going to operate. Has anyone got any advice on what will be the most cost efficient/tax efficient options for us.
A) Our own ltd company where we are the only 2 employees
B) Umbrella companies
C) Partnerships.

I am reading loads and loads from the different sites (cuk, pcg etc) about first timers for the individual contractors any advice for a couple ?

Cheers
A

[OrangeHopper]

Simple in my opinion - Limited Company.

It may be a lot of hard work to start with but, with the help of a decent accountant, you should reap benefits in the future if the two of you can agree on how the company is run.

If you suddenly found you wanted to diversify slightly, say, do some DTP or sell software, then the company provides the framework under which this can be done. It may not be so simply via an umbrella.

Limited Company, as its name implies has the limited liability advantage over a partneship.

The important thing is whether the two of you think you can work together or would feel happier being independent to start with.