Partnership
A partnership occurs when you decide to pool capital and work together
with at least one more person. In this form of business, you and
your partners are joint-owners of the business and therefore will
share the business profits and risks.
There are advantages and limitations of running a Partnership
type of business. Carefully study the implications of these pros and
cons before deciding if this form of business is right for you.
Advantages of Partnership
Partnership means having more expertise and more resources
for capital.
Partnership means business risks can be distributed and
shared among partners.
Limitations of Partnership
All partners carry the same responsibilities. This means
that you are liable for risks and debts of the business even if
it is caused by the actions of your partners. With unlimited
liability, each partner is also liable to use their private
resources to meet the partnership's debts.
Disagreements and disputes may occur among partners and this
may disrupt business plans or operational efficiency.
A Partnership’s lifespan is limited – it may end if any one
of the partners has mental disorder, falls bankrupt, resigns or
dies.
Click
here for information on procedures
with regards to Partnership.
Partnership.htm