Business Structures; Advantages and Disadvantages

The benefits of Partnership Company are that business is anything but difficult to build up and start-up expenses are low. There is more capital accessible for the business. Workers that are of high-bore are made accomplices. The burdens are that the obligation of the accomplices for the obligations of the business is boundless . There is additionally danger of differences and contact among accomplices and administration. Every accomplice is an agent of the partnership and is at risk for activities by different accomplices. This means that it brothers choose this type, they will be responsible for each other’s action irrespective of the fact whether they like it or

Our business is a partnership type of business because it’s owned by two people. Through our partnership, we will increase the level of our business, making decisions and implementation of changes can be fast, and we cover each other for holidays and

The below table compares and contrasts business structures on the basis of the most common issues, naming: taxation, liability, risk and control, continuity of existence, transferability and expense and formality (Quickmba, n.d.). Also, you will notice that in the table the similarities are extended from one structure to the other, while differences are kept in separate cells.

The partnership is a form of business that could be possible in Shania’s scenario due to the other individuals showing interest in the business idea. She can create a partnership with one or more persons and sharing of the profits is divided equally, unless an agreement states otherwise (Kubasek, et al., 2015, p. 423). Some of the benefits of a partnership are the ability to raise more capital and to share ownership responsibilities (Block, et al., 2015, p. 9). With committed partners it is possible to have a successful partnership.

A partnership is a business that has 2 or more people working in it like Starbucks is a business that is in a partnership. The advantages are you have more capita available to you and the company you have combined skills with other workers simple to set up you have tax advantages the disadvantages are unlimited liability you have to share your profit with the other owners you can have conflicts with owners or workers that do not agree partnership ends to death and possible

Similar to a sole proprietorship, a partnership business structure is simple to create. There are no legal forms to file and agreements between the partners are not required (Kubasek, Browne, Herron, Dhooge, & Barkacs, 2016). A partnership business structure allows two people to combine resources to enhance business profits (Winrow, 2008). With the addition of another owner, capital funds are increased, resulting in additional growth potential. Another advantage to engaging in a partnership is the method of taxation. Income in a partnership flows through as personal income;

Being partners is not always easy, and it takes time and a lot of effort to build up a strong relationship between two companies. There are many uncertainties around partnerships, the partner can have a hidden agenda and have an opportunistic behavior (Aswathappa, 2010). The goal or objective for the partnership can be unclear and makes it difficult to know when they have succeeded. If there is an unbalance in the level of investment, effort or expertise the other partner can feel they are not getting what they expected.

More capital can be raised because more people (partners) are investing in the business. Roles and responsibilities are divided between the partners, which makes it not one-man job. Risks and loses are shared between the partners. There is no obligation to make the financial records publicly available unless the partnership has LLP status (Limited Liability Partnership).

In order to set up the business it is necessary to consider the practical implications associated with the different business structures which may be used to establish the firm.

The arguments in favour of business partnering stress the positive aspects of the partnership, enabling both people and business issues to be considered in a wide range of decisions that will

Advantages of partnership include increased sources of credit and capital. Loans are easier to get since the number of people involved in a partnership are more likely to pay back any financial burden that may

There are many different structure of business in our economy, like sole traders, joint ventures, syndicates, partnerships and corporation. Each structure of business has its own advantages and disadvantages. In following paper, I will compare the advantages and disadvantages using the business structure of a partnership and a corporation, and discuss where using one of these structures would be preferable to the other one.

While checking on the advantages of partnership form of business, it is believed that it is the easiest form of business to form as it only requires voluntary agreement between the partners and the business can be formed. The agreement is not in a fixed form, can be written or oral making if easier and flexible while forming it. This indicates that there are few legal formalities required during the formation hence fewer resources used. Since it involves many partners, there is expectation of high initial capital as compared to other forms of business. This high capital leads to increased scale of operation for the business which raises its profits. (Goldsmith, 2006) The limited partners if included in the partnership assist in investing the business from outside the business hence marketing their business as well as maintaining a competitive advantage. This form of business incorporates different skills and experts from different fields when they partner to come up with one business. This improves the management of the business from various skilled people.

A partnership is the relationship between persons who carry on a business together in common with the view of making a profit.

Before making the decision of the business entity, it is important that the client understands the different aspect of each of the business entities. With this in mind, small business owners and their advisors should examine the alternatives available (Miller, 2014, p.43). The client needs to be informed that going from a sole proprietorship to other business entities such as partnership, limited liability company, partnership’s, and corporation required a lot of research. A partnership required two or more individuals in an agreement to carry on as a co-worker of a business. It is important that both individuals have a professional and positive relationship in order to accomplish their goal together. The partnership is split up into two types of partnership, which is general and limited. The difference between the partnerships is that the general partnership doesn’t require formation, but limited partnership required