Pros and Cons of Business Partnerships

Partnership
Business Structure
1/22/2020
University
Student Credentials

Business Structure 1
Letter of Advice
Michael Sanders and Sunny Brooklyn
78, 6th Avenue, 26th street
New York, USA.
Yorkshire Consultants,
9th Avenue, 6th Street
New York, USA.
Subject: In relation with the meeting on 20th January 2020 regarding Business Structure.
Dear Mr Sanders and Mr Brooklyn,
This is in regards with the discussion you had with Mr Yorkshire; the business you both are
planning to conduct together is buying a multi -million Dollar College. In order to create or
acquire any business, an individual has different options to choose from, including sole
proprietorship, partnership, company and trust. Since trust is a complicated form of business
structure, the present discussion focuses on sole trader, partnership, and company
(Tasmanian Government, 2019). Sunny and Michael, in the present instance, have the
option of choosing one of the aforementioned business structures.
A sole trader business form is such structure where a single individual presides over the
entire business. Such a person creates, runs and oversees every part of the business
(Tasmanian Government, 2019). In the present instance, this business structure is not
suitable for Sunny and Michael. The reason for this is that these are two individuals who

Business Structure 2
want to run the college. Owing to the restriction of a single person running the house in sole
trader form of business structure, this option is not viable.
According to the criteria that you both mentioned, the apt business structure that will suit
your convenience would be a partnership. A partnership structure will be the best suited deal
for you as the profits as well as management can be decided as per your mutual consent and
there will be no involvement of third party (Stowers, 2020).
As per the current scenario, you are very much up on time as partnership is currently on the
boom. It is quite beneficial for the Australian entrepreneurs, hence, this methodology
functions admirably for them. Since, the expenses of setting up a Partnership are moderately
low, and this choice for your business requires less upkeep and less managerial expenses than
a Pty Ltd Company. In a partnership the partners or the owners own all the securities related
to the business and they do not need to share any with an external person. A Partnership
likewise offers progressively money related revealing security, contrasted with a (Pty Ltd or
Public) Company.
This business structure also has the provision of tax saving and change of legal structure can
be changed whenever it is required without much hassle. The cost to start up this kind of
Structure is quite low in regards with the other structures. Works can be decided upon and
decisions can be taken mutually hence making it easier to work with. There is no definite
time period stated as till a particular time only the business will be carried on, it can be for an
indefinite time period (Tasmanian Government, 2019).
As in Partnership one can easily pool the assets if required for the firm as such that it can
make work quite simpler for the partners. For instance, on the off chance that you and your
accomplice apply for a credit for office space, having the option to pool the assets in this case