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- The work is shared out between the partners.
- After the death of an owner, the business continues.
- Partners can take more time off work.
- Partners can be experts in different areas of a business, for example: finance.
- Sleeping partners can help to set up the business.
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- The profit is shared between the partners.
- Disagreements may occur.
- The business would have unlimited liability.
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A partnership business can have between two and twenty owners. Each partner invests finance into the business when they join, and in most cases share out the profits depending on how much money they have invested.
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Most partnerships write a Deed of Partnership when setting up. This legal document provides the rules of the business. A Deed of Partnership should include:
- Information regarding the financial contribution of each partner.
- Details on how the profit will be shared.
- Details about each partner´s responsibility.
- Information about how partners may be added or removed.
In the United Kingdom the 1980 Partnership Act states that all partners are equal to each other in a business, unless a Deed of Partnership is drawn up and states otherwise.
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