A partnership is an entity that is financed and operated by at least two individuals. Many partnerships are easy to establish and, since they have more than one owner, are capable of raising the funds needed for operation faster than a sole proprietorship. Depending on the type of partnership that is formed, the business is also not taxed separately, thus leaving it with more capital in the long run.
In addition to the financial benefits of a partnership, starting a business with multiple people has the benefit of additional knowledge. Each leader brings their own set of skills, contacts, and knowledge to a company that can provide a new business with a great deal of credibility early on. Different partners can provide varying perspectives when it comes to solving problems and offer up moral support when the company is struggling. Further, the prospect of becoming a partner can be enticing to many high-caliber employees and this can make it easier to build a staff of qualified individuals.
