Sole proprietorship or partnership, which do you prefer?

[Kinglegend01]

A sole proprietorship type of business is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. A sole proprietorship has alot of advantages and disadvantages. The major advantages of a sole proprietorship type of size is that it is easy to establish and the owner enjoys all the profits made from the business alone without sharing with anyone. Another advantage is that he is able to make decisions on his own without consulting anyone or needing anyones approval. While partnership is a business type whereby an arrangement is made between parties, known as business partners , in which they agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses , interest -based organizations, schools , governments or combinations. Partnership also has alot of benefits like increased and bigger capital, shared business risk and joint decisions making. It also has disadvantages like shared profits,joint decision making and others.

 

[IamDozzy]

I would prefer a partnership business over a sole proprietor business simply because “two heads are better than one”. With a partnership business one would have the privilege to pool resources and materials with his/her partner and start the business. In the absence of one partner, another partner could run the business leaving no vacuum in the process. The death of the sole proprietor in a business result in the death of the business.

 

[Deleted member 28127]

Partnership will reduce concurrent access betweent company and will increase sales for everyone and additionnally they let the customer of both two company becomes customer of one company. So partnership is really helpfull and many companies becomes partners after days of running. Sole propietor is so risky these days because partnership of other company will affect bad your sole propietor and will be more competitive to you. So I prefer personally partnership because it helps to grow fast and reduce the expected loses.

 

[Deleted member 28873]

Sole proprietorship is a self owned business while partnership could involve two or more people establishing a business together.The major advantages of a sole proprietorship type of size is that it is easy to establish and the owner enjoys all the profits made from the business alone without sharing with anyone. Another advantage is that he is able to make decisions on his own without consulting anyone or needing anyones approval. While partnership is a business type whereby an arrangement is made between parties, known as business partners , in which they agree to cooperate to advance their mutual interests.

 

[anil02]

If we have enough funds to start a business than I think proprierorship is better than partnership. It is not easy to having equal interest and habit of 2 persons. So in long term it may cause of clashes among the partner. IF we have not enough funds than we can try partnership. In case of insufficient I prefer to borrow money than having a partner

 

[Olajidey]

I prefer sole proprietorship more than partnership reason is that there is no issue arising when it comes to profit sharing or when it comes to dropping money for the growth of the business. but there are some factors that warrant going for the partnership for example division of labour, contributing financially for the growth of the business.

 

[Lekhraj19]

The both comes with the skill factor and the time factor. Also, I feel sole proprietorship is something were you need to work hard on your own. However, what I think is in the future I would look for becoming a sole proprietorship, and when I am able to showcase my skills to the new comers, then I can hire them too.

 

[anil02]

I prefer sole proprietorship more than partnership reason is that there is no issue arising when it comes to profit sharing or when it comes to dropping money for the growth of the business. but there are some factors that warrant going for the partnership for example division of labour, contributing financially for the growth of the business.

Sharing profit is not problem with partnership, because we have to execute partnership deed to make a partnership firm. In it most of terms and conditions like, profit sharing, investment all clear. Most important thing is our tolerance capacity. It is possible that our business may have some loss because of fault of partner so we must have capacity to tolerate it

 

[Alexandoy]

If I will make a start up of a business I want to be the boss and that cannot happen if I have a business partner. I am saying this because I had already experienced a failed partnership and I don't want to repeat that mistake. If my capital or knowledge is not sufficient then I am willing to wait until I can be fully armed to go to the battle called business... all by myself.

 

[anil02]

Yes if we have bitter experience of any thing we don't like to repeat it, and it is also wise decision. But it dose not means that partnership always failed. If we search we can find many partnership firms which are working perfectly. Success of partnership is depends on attitude of partners. I said earlier that to be success in partnership we must of tolerance capacity

 

[Sammyesx]

They are both very good business option, they both have their own advantages and disadvantages, personally I would prefer a sole proprietorship business it gives full autonomy to a business owner and also the full benefit of the reward of the business when it becomes successful, most successful businessmen started their business solely after their business has become successful before they started selling shares.

 

[btaliat]

I don't really ask people to join partnership except if there is no other option. Joininf partnership is like putting oneself in danger. The problem is always rolling even if there is legal backing. The activities of one partner may be slowing down the rate of the productivity of the business down. The hardworking partner has less to do because the business belongs the two of them.

 

[Good-Guy]

I always want to own my own business and I do not like people to interfere in my matters, so I would prefer sole proprietorship over partnership. However, I can undersatnd that many people do not have enough capital to invest, so people would prefer partnership in that case and I can understand that case, too. If you are the only owner of your business, you can make decisions without allowing anyone to interfere in your matters.