This week: partnerships and legal structure
If a group of individuals come together to promote a business venture, the term partnership can loosely be applied to a number of structures, including a traditional partnership (under the Partnership Act of 1890), a limited company, or an unlimited
Traditional partnerships are less attractive than corporate structures, as they bring higher exposure to:
personal financial risk;
less favourable tax treatment;
greater difficulty in dealing with the separation of ownership and management; and
greater difficulty in dealing with entry and exit of part-owners.
Limited companies
Limited companies (LCs) are, therefore, becoming increasingly popular – even in professional services.
In this instance, the ownership of the ...
