PARTNERSHIP

- A legal association of two or

more persons as co-owners of an
unincorporated business.
ADVANTAGES OF PARTNERSHIPS
4.
2.
1. 5.ofTax
Ability
3.Ease
More
Pooling to advantage
ofattract
funds and retain
available
knowledge
Formation employees
and skills

2. Pooling of knowledge and skills

The
The The
The combined
combined knowledge
only requirement
income of the resources
before the
partnership of the
and skills
partnership
is not
Partnerships
3. Morepartners
have the ability to
taxed
of provide
funds available
commences separately
the partners aisbigger
operationsfrom forthe source
the partners’
provide partners
the toof
overcome
agree on this
basic difficulty
aspects of the by offering
business like the
funds.
4. Ability incomes. The
Any
to partnership
attract and condition
profits
retain leads
derived
employees
with a by
distinct to a
the
naturepartner status
of the business, to valuable
location, capitalization,
higher
partners arecredit
treated
advantagerating
and for
taxed the
as their
5. Tax advantage employees.
and so on.
individual incomes.
partnership.
DISADVANTAGES OF
PARTNERSHIPS
1. Unlimited liability

2. Limited life

3. Potential conflict between partners

4. Difficulty in dissolving the business

TYPES OF PARTNERSHIPS
1. General Partnership

- An arrangement
2. Limited Partnership ofin
association which
two the liability
or more persons,
of onewith
each or more partners
unlimited is limited
liabilities, whotoare
the
amount
actively of assets they
involved in thehave invested in
business.
the business.
END
Reynald A. Tajara