Partnership Business - Advantages & Disadvantages
Advantages:
- Simple organization
- Additional personal resources (financial and managerial)
- The right to select partners
- Low start-up (organizational) costs
- Limited outside regulation
- No double taxation
Disadvantages:
- Costs more than sole proprietorship
- Unlimited liability for all partnership obligations
- Lack of continuity in event of death or disability of one partner
- Sharing of profits
- All profits are taxed as personal income
- Difficult to raise additional capital
- Hard to find suitable partners
- Divided authority (limited decision-making)
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