The business Partnership.

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The Partnership:

Considerations to take on board when forming a partnership if you are consider forming a business partnership with a colleague or friend, there are a number of legal issues and implications which you need to address before you begin to trade.

Partnerships share's the control, responsibility and finances; this could be one other or several people, reducing the overall input one individual will give to the business.

A partnership adopts a different strategy, instead of one person owning the company; a partnership can consist of between two and twenty people. In essence, this would mean that you would need to consider finding one or several people who you could trust unconditionally to take on joint or shared responsibility for the running of your business. Although this would mean that the profits and liability would be shared, a partner or partners would be able to inject fresh capital, as well as skill and ideas into your business enabling you to use this for further expansion and development.

In partnership, perhaps you would need to consider if an ordinary or limited partnership would be the best for your business as the two roles indicated the level of liability and responsibility, the differences are outlined below:
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Ordinary

The partner or partners would take on unlimited liability, which means if they go bankrupt they can lose they're personal belongings for any debts incurred by the business and all profits would be shared equally between the partner's. Ordinary partners also take on equal responsibility and decision-making in the running of the business.

Limited partnerships

Allows a partnership to claim limited liability to the amount invested, whish demonstrates that they would only lose the cash invested in the company, and whilst profits are shared equally the responsibility and control of the business lies with ...

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