Business owners often choose a sole proprietor business structure when starting up. The road to entrepreneurship can be lonely. Greater rewards may result from forming a business partnership. Partnerships offer more freedom for business owners with shared business tasks and the potential to earn greater profits.
A partnership is a business with more than one owner that has not filed papers with the state to become a corporation or limited liability company. There are two basic types of partnerships: general partnerships and limited partnerships. Our company supports general partnerships - the more common structure in which every partner has a hand in managing the business.This partnership is the simplest and least expensive co-owned business structure to create and maintain.
Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits before it is distributed to the partners i.e. there is no dividend tax levied.