Creating, Financing, and Marketing of Business

According to Mary Hanson (1998) no agreements are required to form a partnership, but if preferred you may write an agreement up. The most convincing idea of a partnership is the ease that a partnership may be created and handled. Within a partnership registration with the state and fees are not needed, as they would be within an established business or a limited liability company (LLC). Within a partnership taxes are done easier as there are no taxes on the “partnership” rather only the partners, so there is no reason to file separate tax returns for the business and the owners (All Business, 2012). Benefits of partnerships are also that the “partners” are free to establish their own set of rules and the obligations each partner has to do to keep the business running; whereas, an established corporation or LLC, there is a set of rules the state has established for the company to abide by.

Partnerships may also be risky. The actions of one partner could affect the stability of the partnership. The best means of a partnership is to have a written agreement of the obligations each partner has to fulfill to keep the company up and to determine what shares each partner owns within the company. One other down fall in a partnership is that any lawsuits or debts against the company will fall to the partner themselves; therefore, each partner is financially responsible for his or her share of the business debt (All Business, 2012). Partnerships also are restrained to how much money could be raised and how much the attract investors. When establishing a business a partnership may not be the best way to go. A more beneficial business structure may be to either have a sole proprietorship if no partner is needed or if partnership is needed ...

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