Starting up a Business





Starting up a Business

            In starting up a business, I would prefer a general partner. General partners can partake in the investments, management and the sharing of gained profits. This type of partnership dictates that each investor in the business is liable for any loans and debts taken on behalf of the business venture. My preference is because the said business will require funding from an external source, which might be in the form of a loan. Therefore, both partners should be accountable for its repayment considering no investments or business capital is required.

            Undoubtedly, my preferred partnership is the general partnership. My choice is motivated by the features that characterize this partnership. An agreement of consenting to ownership should be signed. This gives absolute assurance that both partners are bound to the business. Another advantage illustrated by this partnership is liability of both partners towards any legal measures taken by the government and the repayment of debts and loans. The equal sharing of the profits garnered from the venture is quite luring especially considering the funding to start up the business is from an external source.

            The most secure partnership in this case would be a limited partnership. This is much safer than the general partnership due to reasons such as a liability in debts procured by the business. The supposed partner in this case only requests for a partner to receive funding. The repayment of this capital rendered for the business start up should therefore, be settled by the partner who requested the funding, who happens to be the general partner in this business structure. In a limited partnership, the limited associate as less liable.

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