Partnerships - Form 1065

A partnership is a business in which two or more people agree to share ownership and management responsibility for a business. Often partners get together due to complementary skills. If you pick your partners for their skills, you may split responsibilities among the partners. You no longer have to be good at every aspect of the business, but may divide the duties according to each partners' expertise. Some benefits of forming a Partnership are it is easier to raise capital in a partnership than a sole proprietorship. You no longer have to depend solely on your borrowing power you also have the borrowing capability of your partner(s). In this way it is much easier to grow your business. By sharing in the profits, partners generally work harder and strive for success. You no longer have to depend on only your drive to succeed.