Partnership is where two or more individuals agree to work together, sharing their resources and profit generated. Just like sole trader, each partner’s liability is unlimited but the debts of the partnership firm are shared among partners this give advantage over sole proprietorship.
A partnership is considered a suitable form of business where the business does not require large amount of capital, the liabilities to creditors and suppliers in the event to insolvent are unlikely to be considerable and the business is of a size in which each partner can take part in the general supervision.
For the reasons, partnerships are often found in the professionals firms such as accountants, solicitors, and architects, small merchant and manufacturing businesses.
Seek professional advice on suitable business structure for your venture. Business links directory provides contact information on chartered accountants.
Canterbury Accountancy - Right the business structure for right business
