General partnerships are the most basic type of partnership, and are little more than an agreement between two or more people to run a business. General partnerships have fallen out of favor, being replaced by other types of business structures because they don’t offer liability protection for their owners. Despite this, there are some advantages to starting a general partnership.
Advantages of General Partnerships :
Compared to a sole proprietorship. The main advantage a general partnership has over a sole proprietorship is that you will have the availability of the assistance of your partner or partners. Partners can assist you with such things as money, expertise, and the workload. For some people, being in business alone can be lonely and hard on the nerves. It can be nice to have someone to share the responsibilities and decision-making.
Compared to a limited partnership. The primary advantage a general partnership has over a limited partnership is that a general partnership is usually more simple. The partnership agreement is less complicated and limited partnerships often require more government regulation. Limited partnerships are generally required.