Joint effort, Shared responsibility, combined resources...
Better business sense? Let SKN help you decide.
At SKN Chartered Accountants we can help you to weigh the pros and cons of being in a partnership. If this is something that you want to do for certain then we can set you up as a business partnership offering you all the relevant financial information you require.
For those who are unsure and yet to decide we will help you to weigh the advantages and disadvantages and establish whether this is the best structure for you. If not, we will advise you on alternative structures.
For those of you who are already in a business partnership, being in this type of set up can offer you a lot of flexibility where you are sharing the responsibility and finances between 2 or more people. The partners manage the business, are equally liable for its debts and equally share the company’s profits and losses.
The advantages of a Partnership:
- Share the burden - with your business partner because there are more than 2 people involved.
- More Resources - More experience and skills between partners allows access to other areas to enhance the business such as technical and financial solutions.
- More ideas - A partnership enables efficient decision making where each partner brings different views and opinions.
- Little regulation - Few Regulatory obligations
The disadvantages of a Partnership:
- Unlimited Liability – Business are 100% liable for the action of the business. They are also jointly and individually liable for the action of the other partners.
- Partnership Disagreement - Potential disagreements with partners consequently causing conflict of opinions. Partners frequently have different views about their individual goals and future.
- Decision Making - Having a partner often slows down the decision making process. This is because each partner needs to be consulted before any decisions are made for the business.
- Profit Share – Profits must be shared evenly between partners
How we can help your business:
SKN Chartered Accountants will be happy to help your business requirements. If you are already established and would like to undertake a new business partnership or would like to discuss further opportunities that are available to you and your business, then allow our qualified experts to guide you to the right path.
Please contact us on our free phone line 0800 612 3371 where someone is happy to help you today.
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