Creating, Financing, and Marketing a Business

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advertiser. When the business comes together the partners will be able to use both of their skills to make the business successful. This could also ultimately reduce the amount of money required in the daily ventures of the company. Instead of looking for outside help for accounting or advertising they could save quite a bit of revenue which could be invested elsewhere in their business. Another advantage is the possibility of tax advantages. The money, or income, that passes through the business is considered personal income and is not taxed by the IRS and reduces the risk of being double taxed. (McGowan, 2011)

With all these advantages there are still a few rib splitting disadvantages that come with a general partnership. One issue is that you are responsible for any mistakes made even if it is made by a partner. This is considered unlimited liability. If the company cannot pay expenses then both partners are put on the line since it is considered a source of personal income. ...

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(McGowan, 2011). This allows you to have limited liability in the business. If the business fails you will only be liable for the amount you invested. This way your own personal assets and income will not be at risk for anything the company does, but once again you are unable to assist with the managing of the business in any way or you forfeit your limited liability.

There is one last type of partnership available if you are still not satisfied. The last form of partnership is the limited liability partnership and this is the newest form of partnership. The best thing about this is that is has all the advantages of a limited partnership but this time around you can participate in ...

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