It is easy to form a partnership. The start up costs are low. Broader management base can improve efficiency and decision making. There are some tax advantages to partnerships. There is complete or unlimited financial liability on the part of the owners in respect to the business.
Good partners are difficult to find.
It is difficult to raise large amounts of capital with only two owners. The partners may disagree, which can cause confusion among the employees and also result in poor management decisions. Specialized management improves efficiency and tends to allow personnel to apply specific talents fully in their specialized assignment. Because of number of shareholders, it is easier to raise capital. Since corporations are a legal entity, they are entitled to specific privileges, rights and regulations.