From the course: Running a Web Design Business: Defining Your Business Structure

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Partnerships: Advantages and disadvantages

Partnerships: Advantages and disadvantages

From the course: Running a Web Design Business: Defining Your Business Structure

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Partnerships: Advantages and disadvantages

In this video, I will show you the easiest way to start a business if your company will have more than one owner. A general partnership is a single business owned by two or more people. In a general partnership, the owners share business responsibilities, profits and losses. Let's take a look at some advantages of general partnerships. First of all, general partnerships are easy to form. There are no formal registration requirements to create a general partnership. However, it's important to develop a partnership agreement that clearly explains the rights and responsibilities of each partner so there are no misunderstandings. A general partnership has very few costs. It's inexpensive to form and easy to maintain because it doesn't have complex administrative or legal requirements. Taxes in a partnership are also simple. A general partnership is not taxed as a separate business entity. All business income and losses are passed through the partners' personal income tax returns. However,…

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