Partnership business means any type of business owned by two or more people who have agreed to share all the gains, losses, profits and benefits, this type of company is called partnership. In this partnership laws are not shared between the owners and their business. Business partners should have a legal agreement that includes how business decisions will be made, how profits will be shared between partners, when they are faced with a problem there should be an agreement that includes how problems will be resolved and how future ones will partners be added to the partnership, how partners can be expelled, or what actions will be taken to terminate the partnership when necessary. They must also have an agreement on the amount of capital and time each partner will contribute to the business. When there are losses and profits both must be divided according to a percentage agreed upon by the partners. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The partnership can be initiated by handshake, oral or written. But, for the protection of each partner, the most suitable way is to have a written or printed partnership agreement that includes all the necessary agreements. This written or printed agreement should include the profit and loss split percentage, and what each partner's rights are, what each partner's responsibilities are, and what happens if a partner leaves the firm or what happens when a partner leaves it ties back to the asset and amount of capital each partner invests in the business and how the assets and capital should be divided between the partners if the business is closed. All things change every second, so it's good to have signed a document that includes all these things. Benefits of Business Partnership Capital: If there are more partners, they can invest more capital in the business. Flexible: Partnership businesses are easier to form and easier to run. Owners can decide how the business should operate. Easy Decisions to Make: Partners can easily make decisions based on the company's situation. Limited external regulations: Compared to other types of companies, partnerships have fewer regulations. Responsibility is shared – Partners can share responsibilities with each other. It will allow partners to improve their capabilities. Disadvantages of Business Partnerships Disagreements – There can be disagreements between partners. It will be a disadvantage when making decisions. Unlimited Liability – Partners are subject to unlimited liability, meaning that each partner shares liability and all risks, including the financial risks of the business. Taxation – This is one of the main disadvantages of partnerships. Partners must pay taxes every year. Profits should be shared: All profits earned should be shared equally between partners. Limited liability company Limited liability company is a type of legal business company. In these limited liability companies the control and ownership of the companies are in the hands of different types of people. The owners of these limited liability companies are called shareholders and members of the company. Liability is simply limited to this type of company. Limited liability companies allow their business owners to keep finances and assets separate from the business. This means that shareholders who have invested money in the company are only liable for the money they have invested in the company. They are no longer responsible for what they invested. This is a good one