Is Partnership The Key?

For the past two years I've noticed many people go into business with a partner, some with family members, long time friends, and short time friends. By me wanting to start my own private practice I've been thinking if I should go into business by myself or with a family member or friend that share the same qualities and interest as me. Some people recommend a partnership and some don't recommend a partnership, and hearing this make me want to know answers why people feel that way. For the past hour I have been searching for answers on the internet.

There are both advantages and disadvantages in starting a business with a partner. For those who may not be aware of what a partnership is it is when two or more people are responsible for a business. In a partnership you are taxed the same which means you have to claim business on your tax return. However many problems can come up as well. Sometimes your partner may have different goals for the business then you, they might also have unequal commitment as far as finances. In other wards they might want to spend the money in an different or inappropriate manner than you.

Besides the problems in a partnership there are also some good out of it. I've learned partnerships can be less paperwork and less expensive, each partner can take on a role in the business it make the work a little bit easier. For example, one can handle the finances and other can handle the management and vise versa. Who ever feels or knows their good at one or two task can take that role, partners can also learn from one another's strengths and weaknesses and can go from there. Once you developed the knowledge of one another's strengths and weaknesses both work and business can be taken care of much more quicker.



Harroch, Richard. "Advantages and Disadvantages of General Partnerships." Buyer's Guides 16 11 2006 30 04 2008 .

"Partnership: Advantages and Disadvantages." Wednesday, April 30, 2008 30 04 2008 .