Welcome to another video from Jon’s Bookkeeping.
I’m Jon Cooney and today I want to talk about business partnerships.
Are you considering a partnership business structure?
In this video, we'll break down the pros and cons to help you decide.
There are three main types of partnerships:
General Partnership: equal ownership and liability
Limited Partnership: limited partners have limited liability
Limited Liability Partnership (LLP): partners have limited liability"
The benefits of a partnership include:
Shared financial risk and investment
Combined expertise and skills
Flexibility in decision-making
Easy to establish
Shared tax liability
However, the disadvantages include:
Unlimited personal liability (except for LLP)
Potential for conflicts and disagreements
Shared profits may lead to unequal distribution
Difficulty in exiting the partnership
Joint and several liability (Each partner is individually responsible for the entire debt or liability of the partnership.)
For example: imagine two friends starting a bakery together. As general partners, they'll share ownership, liability, and decision-making responsibilities.
So there you go, partnerships: shared risk, shared reward.
Consider your business goals, partner dynamics, and liability concerns before deciding.
Consult with a professional to ensure you're making the best choice for you.
And if you need business entity guidance or bookkeeping services, schedule a free consultation call with me.
We can discuss your situation and business requirements.
I’m positive I can help you and I can’t wait to speak with you!
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