Why Form a Partnership?
Posted on August 1, 2014
This is why I decided to form a partnership:
The simple answer is that I could not run my business the way it needs to be run without this particular partner. We like each other and we complement each other!
Of course, I’ll list a few good business reasons I’ll recommend forming a partnership. But first I’d like to inform you that I have strong opinions in the subjects that I am an expert in, I’m messy with cataloguing paperwork and, sometimes, I will forget the details where it concerns business.
My business partner is also an expert in many categories; that I am not. She is patient and she’s meticulous with documentation and cataloging as well as business details. She’s also been in partnerships before so, I feel like, if she thinks I can do this–so do I!
This sounds like ying+yang or male+female energies which complement each other, doesn’t it? The fact of that matter is that I was lucky. Both Jean and I fell into the business of building Made In Chicago Speakers Bureau as a business because we both saw an opportunity at doing something we loved: getting our Chicago speaker friends gigs. We have invested, for almost a year now, time and building a solid business plan so we have learned how to work as partners. The lucky part is that we were both passionate about this business and that our skills, personalities and the way we individually and collectively like to work meshed!
7 Good Business Reasons to Form a Partnership
- Think about test-driving a business relationship before you sign a partnership or corporation agreement.
- Partnerships are four times as likely to succeed as sole proprietorship.
- If you are a sole proprietor you will not have unlimited liability and risk of loss.
- Profits from being a sole owner are taxed as if it’s personal income: self-employment tax.
- With a sole proprietorship, the debts or damages are your debts and you must pay them, even if it means selling your personal assets.
- Partners provide each other with different and valuable skills and perspectives that you may not have and need.
- Partnerships are actually and relatively a simple management structure because decisions ultimately rest with the majority of percentage owners.
Finally, you should contact our business associate Daliah Saper from Saper Law to get guidance in how to set up your business as the correct entity.