6.1.3 Partnership

Successful Moo Duk Kwan Studio Ownership

6.1.3 Partnership

A partnership is a single business where two or more people (partners can be a person, LLC, corporation or another partnership) share ownership. Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business.

Forming a Partnership

To form a partnership, you must officially register your business and business name with your state, a process generally done through your Secretary of State’s office. For partnerships, your legal name is the name given in your partnership agreement or the last names of the partners.

Advantages Disadvantages

* Easy and Inexpensive to form

* Shared Financial Commitment

* Complementary Skills – Able to utilize the

strengths, resources and expertise of

each partner

* Partnership Incentives for Employees –

Partnership incentives often attract

highly motivated and qualified

employees to become partners in the

future * Disagreements Among Partners * Shared Profits – Because partnerships are jointly owned, each partner must share the successes and profits of their business with the other partners. An unequal contribution of time, effort, or resources can cause discord among partners.

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