Partnership Business

A partnership exists when their is more than one owner of the business and the business is not registered or organized as a limited liability company. Partners share in profits, losses, and liabilities. Partners can be individuals, corporations, trusts, other partnerships, or any combination of these examples. One of the biggest disadvantages is that the owners has unlimited liability for all legal obligations and liabilities of the company.

In addition, each of the partners acts as a representative, and as such the company can commit to commitments without the consent of the other partners. Liability caused by one partner leaves both partners vulnerable to litigation. The tax benefits are not as significant as for a corporation. Income and losses from business are reported in the individual tax returns of the owners. Let’s go start about partnership business…

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