It doesn’t really matter what the product is that a business supplies, making sure any business is set up properly and legally will be a prerequisite. On the whole it is simpler to set up as a sole trader; in this scenario you are classed as self employed for the purposes of paying tax. You are also personally liable for all of the business’s debts and you must be prepared to give some time to the accountancy and legal side of running the business. These points are often overlooked by the budding diy or hobbyist who does jobs for folk and makes a little money on the side. It may be casual but as the jobs increase, this is when it becomes a business and needs the legalities addressed sooner rather than later.
A partnership is when a business is run by two or more people. Setting up a legal partnership means you are all classed as self employed for the purposes of paying tax. You have equally shared liabilities for the business debts and you all have responsibilities in the area of accountancy and ensuring you run the partnership legally.