The Advantages of Partnership

Easy to Establish
Like the proprietorship, the partnership is easy and inexpensive to establish. The owners must obtain the necessary licences and submit minimal number of forms

Complementary Skills
In successful partnerships the parties skills and abilities usually complement one another, strengthening the business managerial functions.

Division of Profits
There are no restrictions on how partners distribute the business profits as long as they are consistent with the partnership agreement and do not violate the rights of any partners

Larger Pool of Capital
The partnership form of ownership can significantly broaden the pool of capital available to a business. Each partner’s asset base improves the business’s ability to borrow needed funds.

Ability to attract limited partners
When partners share in owing, operating and managing a business, they are general partners. General partners have unlimited liability for the partnership’s debts and usually take an active role in managing the business.

Little government regulations
Like the proprietorship the partnership forms of operation is not burdened with red tape.

Flexibility
Although not as flexible as sole ownership, the partnership can generally react quickly to changing market conditions.

Taxation
The partnerships like the proprietorships, avoid the double taxation disadvantage associated with the corporate form of ownership.