The business does not exist apart from the owner. Because it's so easy to organize and the owner has maximum freedom. There are few legal details to handle and the owner reaps all the benefits. It's also very easy to cease activities. On the other hand, the owner is obligated for all the debts.
Creditors can have a feeding frenzy on personal assets to satisfy any debts.
It is also extremely difficult to obtain any financing. Partnership A partnership is a relationship between two or more persons who join together to carry on a trade or business. Each person contributes in some fashion and each shares in the profits and losses. The partners collectively offer an advantage of more available skills. A partnership does possess legal status.