Monday 18 April 2011

What type of company are we?

Partnership.
  • Very common in professions.
  • Minimum of two partners - max 20.

    • Advantages
    • Quick and easy to form. 
    • Larger amount of capital available.
    • Cheaper running costs - e.g. rent.
    • Each partner can specialise in one aspect of the business.
    • Burden of work shared.
    • Ideas developed easily.
    • Personal contact with customers.

      • Disadvantages
      • Lack of capital for expansion.
      • Disagrements.
      • Need for consultation leads to inflexibility.
      • Decision of one partner is binding. 
      • Does not have limited liabilty.
      Don't need to worry about corporation tax or PAYE as we have no employees - just ourselves.

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