Choosing the Right Business Structure: Partnership vs Company

Business Structures
(Advice to Client)

 Partnership
◦ Agency relationship
◦ Business in common with profit
◦ Not a separate legal entity
◦ Three types based on differing liability
 Company
◦ Separate legal entity
◦ Limited liability
◦ Perpetual Succession
Business Structures

 Advantages
◦ Easy to form
◦ Low compliance costs
◦ Better access to resources
 Disadvantages
◦ Personal liability of partners
◦ Higher tax rates since partnership only a
passthrough mechanism
◦ Issues with changes in ownership and raising
finance
Partnership Business
Structure