Partnership and business
Christopher Crumbley
Strayer University
Mr. Swinney
Business 100
June 3, 2013

Pros and Cons of partnership as form of ownership There are many benefits when dealing with partnership and the good thing about it is how easy they are to start up and the simplicity of maintaining it. The partnership would have to establish a corporation or limited liability company known as a LLC, the great benefit of this is business do not have to register with the state and pay fees, and the partners , not the partnership are taxed , and filing income tax returns is relatively easy. The difference is that there are no need to file a different tax returns from cooperate and its owners. In partnership, it offer flexibility, the partners can dictate their responsibilities and benefits as they wishes for the good of the business. The organization is set up different than a corporation, because of how they are able to distribute the profits and losses. Even though a partnership takes on more financial risk, the end results can have a higher profit turnover, because generally, corporations distribute dividends evenly depending on the stock percentage held by each stockholder. Partnerships are always not the best way to go because they could be very risky at times, the greed and irresponsible of any individual could potentially bind all of the others partners. It is best that business is agreeable with trustworthy partners and not friends and family. There should be some kind of written document establishing balance between partners and the specifications of the outcome of anyone dying or retiring. Another con as a general partnership is that for all business debts and lawsuits all partners are potentially personally liable for his or her share of the debt. If business fails for any reason at all the partner who possess the most shares in the