A business partnership shares overall control and management responsibilities between 2 or more persons.
The partner or partners would take on full liability for any debts incurred by the business and all profits would be shared as per agreement. Ordinary partners also take on equal responsibility and decision-making in the day to day running of the business. There are advantages and disadvantages to entering into a business partnership.
- Business partnerships are easy to establish if you take a practical and professional approach in drafting partnership agreements this will avoid any future disagreement and problems between the partners.
- With more than one partner and owner the ability to raise funds and resources may be increased.
- Due to more than one owner the business can benefit using the resources, knowledge and experience of the business partners and help in managing the growth of business.
- Partners in business are jointly and individually liable for the actions of the other partners.
- All partners in business are 100% liable for the any actions of the business.
- Profits must be shared between all partners as per their respective shares.
- As all actions and decisions are shared therefore disagreements can arise in that case the decision making process may be longer again it depends upon the basic agreements between the partners.
- Some employee benefits are not deductible from business income on tax returns.
We are here to HELP
Is a partnership suitable for your situation?
We are always happy to discuss your current and potential business situation. Whether you are venturing into a new business partnership, or you are already established, we can help you in all financial aspects of your business.
Take advantage of our expert knowledge and allow us to guide you through the potential pitfalls of a business partnership.