Availability of Capital and Credit. Partners can pool their funds so that their business has more capital than would be available to a sole proprietorship. Retention of Profits. As in a sole proprietorship, all profits belong to the owners of the partnership. Combined Business Skills and Knowledge.
Partners often have complementary skills.
The weakness of one partner in a certain area may be offset by another partner's strength in that area. Possible Tax Advantages. Like sole proprietors, partners are taxed only on their individual income from the business. Disadvantages of Partnerships Unlimited Liability. Each general partner is personally responsible for all debts of the business, regardless of whether a particular partner incurred those debts.