At Maz & Co Accountants we can help your business partnership with all of your accountancy needs. A business partnership shares control, responsibility and finances between two or more people.
The partner or partners would take on full liability for any debts incurred by the business and all profits would be shared equally. Ordinary partners also take on equal responsibility and decision-making in the running of the business. There are advantages and disadvantages to entering into a business partnership.
Business Partnership Advantages:
• Business partnerships are relatively easy to establish; make sure time
is taken in drafting partnership agreements to avoid future problems.
• With more than one owner, the ability to raise funds may be
• The business can benefit using the knowledge base and experience of
all of the business partners.
Business Partnership Disadvantages:
• Business partners are jointly and individually liable for the actions of
the other partners.
• Business partners, like sole traders are 100% liable for the actions of
• Profits must be shared evenly between all partners.
• Since decisions are shared, disagreements can occur, and therefore
the decision making process can take longer.
• Some employee benefits are not deductible from business income on
Is a partnership suitable for your situation?
We are happy to discuss your current and potential business situation. Whether you are venturing into a new business partnership, or you are already established, we can assist you in all financial aspects of your business partnership. Take advantage of our expert knowledge and allow us to guide you through the potential pitfalls of a business partnership.