Primciple of finance | Business & Finance homework help
1. Lower Taxes: Partnership businesses offer more tax advantages than corporations as the profits and losses are passed through to the partners and taxed at their respective individual income tax rate. This can be beneficial for organizations with multiple owners who wish to take advantage of lower marginal tax rates.
2. Easier Start-Up: Establishing a partnership business structure is generally easier than creating a corporation, especially if there are only two partners involved. The formation process requires less paperwork and is typically much faster than establishing a corporation, making it ideal for those who want to quickly get their business up and running without having to worry about navigating complex legal processes.