Business has limited life. Death or disability of the owner will jeopardize, or even terminate, the business. Ability to borrow money is limited to what the owner can secure personally. Each partner contributes money, property, labor, or skills and each expects a share in the profits or losses. Each partner is taxed on their share of the partnership at their personal income tax rate.
Many partnerships fail because of unforeseen disagreements.
Make sure you spell it all out from the start. In addition, partnerships must register with the Florida Department of State, Division of Corporations. For more information about filing a fictitious name and partnership agreements, see the section on Fictitious Name, Incorporating, and Partnership Agreements . Easy to form. More sources of collateral for borrowing money than a sole proprietorship.