Partnership

A type of business in which two or more individual run the business, shares profit/loss, control, responsibility and finances. All partners are personally responsible for the contracts and debts of the business.

Advantages: 

• Partnership is a simplest way of setting up a business with two or more individual. Partners share their profit and loss as per partnership agreement.
• It is relatively easy to take on more partners or remove partners from partnership.
• Finance is a key for every business; the individual can easily borrow the money and invest in the business.
• Partners shares their knowledge and skills to run the business successfully.

Dis advantages:

• Business partners are personally liable for the debts and contracts of the business.
• Business partners are jointly and individually liable for the actions of the other partners.
• Since decisions are shared, disagreements can occur. It may take longer to take important decisions.
• A partnership usually has limitations that keep it from becoming large business.

Rauf Accountants can help you with all of the accounting and tax needs at a low monthly fee. We can assist you to set up our partnership and can help you to operate in the most tax efficient way.