Partnership

When two or more people start a business together and have unlimited liability. Partners are jointly responsible for the running of the business.

Benefits-

• Easier to raise capital 
• Problems/ideas can be discussed 
• Greater range of skills/expertise
• Cover for the holidays/sickness

Drawbacks- 

• Unlimited liability 
• Profits are shared
• May be disagreements
• Decisions/ actions legally binding on all partners
• Death of a partner means a share need repaying