Forming a partnership is a recommended option for start-up businesses since it only

requires two or more individuals to pool their resources, skills, and expertise to create
and operate a business together. It is a practical and flexible business organization that
offers several benefits for start-ups.

Among the advantages of a partnership is its shared responsibility and decision-making.

This shared workload will enable the partners to utilize their strengths and can lead to
more effective and faster growth. In addition, partnerships also offer broader access to
capital since combining the financial resources of the partners increases the potential
funding available for the start-up. However, partnerships also come with certain
disadvantages that should be considered. One primary concern is the potential for
disagreements and conflicts among partners. Differences in vision and work ethics can
strain relationships and hinder the business’s progress. Therefore, creating a
partnership agreement outlining each partner’s roles is essential to prevent such issues.
Additionally, partners are personally liable for the business’s debts and obligations
which can put their personal assets at risk (Choose Your Business Structure:
Partnership, 2015).
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In conclusion, a partnership is an attractive business organization for start-ups due to its
shared responsibilities, diverse skill sets, increased access to capital, and built-in
support network. However, potential downsides include the risk of conflicts among
partners and personal liability concerns. Addressing these drawbacks through thorough
partnership agreements and exploring the appropriate type of partnership can help
start-ups leverage the advantages while managing potential disadvantages effectively.

Reference:

admin. (2015, June 24). Choose Your Business Structure: Partnership | Tory Burch Foundation.

Tory Burch Foundation. https://www.toryburchfoundation.org/resources/start-my-

business/choose-your-business-structure partnership/#:~:text=Partnerships%20have

%20the%20advantage%20of,and%20expertise%20of%20each%20partner.