question.jpgIn Business Law

What are the advantages of setting up a partnership?

The greatest advantage to setting your business up as a partnership is that it is the easiest and cheapest business type to set up for multiple owners (since a sole proprietorship cannot generally be owned by more then one person). There are very few formalities that the business must follow, as opposed to corporations and LLCs, which means that they are also cheaper and easier to run and maintain. Partnerships also allow taxes to be kept fairly simple - as with a sole proprietorship, the partnership’s profits and losses are generally reported on the owners’ own personal tax returns, allowing you to avoid the double taxation that comes along with forming a corporation.