hip. The partnership mirrors the sole proprietorship in that all the partners have an unlimited liability where business obligations are concerned. Further, just like a marriage, all partners are responsible for the debts the company accrues, even if they resulted from the unauthorized actions of another partner. Adding to these drawbacks, the integrity of your partner’s is a key factor in success and a relationship should be entered only when thoroughly familiar with all other partners. The old joke about partnerships demonstrates the potential risks, “I formed a partnership with my best friend who supplied the experience and I supplied the money. True enough, one year later he had all the money and I had all the experience.” However, for some types of businesses, partnerships do work well, but they are becoming a dying breed of business formation for all but a few ventures, “Because of the high risk resulting from this debt rule, partnerships, which were very common a century ago, now are limited mostly to legal, accounting, and other professional firms that have special reasons for using this form of organization,” (Merrill and Sedg
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