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Question
difference between partnership and corporation?
how many partners can there be in a partnership? is there a limit? and how does it differ from corporation? i hate it when some measured their distinction from the number of persons involved, someone told me that when the number of partners exceeds five, it should now be a corporation. help me! thank you.
4 months ago - 1 answers
Best Answer
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The minimum is two. Otherwise there is no limit to the number of partners in a partnership. It gets somewhat cumbersome the larger the partnership becomes. Depending on how the ptsp agreement is written revenues and expenses can be specifically identified with a particular partner or by some agreed upon percentage. Corporations typically divide earning through salary, bonus, number of shares held. The real distinction comes in the form of limited liability which the corporation offers. Unlimited life-the corp will continue even after the death of an owner. Transferability of ownership through sale of shares. There are also Subchapter S corporations, Limited Liability Companies, Limited Liability Partnerships, and Limited Partnerships. Each form of business has its advantages and disadvantages and serves a particular need of a business.
by Alan K
4 months ago
Asker's Rating: 