We can provide a full support service for all your partnership’s accounting and finance needs.
Unlike a sole-trader business, a partnership is where two or more people share the control and responsibility of the business. Each partner shares the profit of the business based on his or her agreed profit-sharing percentage. Each partner is also “jointly and severally” liable for any debts incurred by the business.
Business Partnership Advantages:
- Business partnerships are relatively easy to establish; it is always a good idea to have a written a partnership agreement to avoid problems in the future.
- It can be easier to borrow money when there is more than one owner and with each partner introducing their own capital into the business, it can reduce the for borrowings.
- Two heads are better than one? The business can benefit by using the combined knowledge and experience of all the partners.
- Partnerships can enjoy certain benefits without incurring costly benefit-in-kind tax charges, unlike limited companies
Business Partnership Disadvantages:
- Business partners are liable for the actions of the other partners.
- Business partners, like sole traders are personally liable for the actions of the business.
- Since decisions are shared, disagreements can occur and therefore the decision-making process can take longer.
- If the partnership fails, the debts of the business are shared between the partners, but if for whatever reason one or more partners cannot contribute, their portion of the debt is apportioned between the other remaining partners
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TaxSmart Accounting are an independent and forward thinking accountant with the flexibility to meet the client’s needs in a professional and personal manner. Outsource as much or as little of your bookkeeping and payroll needs as required with our fully personalised service. Contact us today for further information or a free consultation on how we can help your business.