Ask Your CPA in Tampa about the Benefits of a Partnership

If you plan to co-own your Tampa Bay area business with someone who is willing to share the risks and rewards, you might have the makings of a partnership. A partnership is a business relationship between two or more people, and in this relationship, each person contributes something to the business such as money, skill, and/or labor. In return, partners expect to earn a share of the business’ profit – or on the flip side of the coin – be responsible for a portion of the loss.

The owners of a new or existing business will need to pay close attention to the legal structure of the company, because whenever there is more than one person claiming ownership, certain complications are bound to arise. Your CPA in Tampa at Reliance Consulting, LLC, can help you find the best way to structure your business in order to maximize your opportunity for success.

You might want to consider forming a legal partnership if the following conditions apply to your business:

• You share the financial commitment with one or more persons.
• You can pool your resources or have complementary areas of expertise.
• Your startup costs are relatively limited.
• Your startup formalities are as simple as acquiring an employer identification number or a seller’s license.

There are benefits to a legal partnership. Unlike most corporations, profits from a legal partnership flow directly through the tax returns of the individual owners. Similar to corporations, however, a partnership allows the raising of capital from more than one source. Furthermore, employees can be retained or enticed to join the company by offering invitations to join the partnership.

There also are potential drawbacks. For example, a legal partnership can expose individual owners to greater liability than the shareholders in a corporation. This and other reasons are why a partnership might not be the right choice for every business.

To help you better understand your options as you create a new business or plan for growth in an existing business, contact your CPA in Tampa at Reliance Consulting, LLC. Our staff has served the Tampa, FL region for more than a quarter-century, and we have the experience and know how to help you decide on the legal structure that best suits your business.