It is a form of business entity organized by at least two (2) or more natural persons. Similar to a corporation, a partnership has a separate juridical personality and may either be a; general partnership, where partners have unlimited liability for the debts and obligation of the partnership, or a limited partnership, where one or more of the partners have unlimited liability and some partners have liability only up to the amount of their capital contributions, or professional partnership, where partnership formed by persons for the sole purpose of exercising their common profession, no part of the income of which is derived from engaging in any trade or business. A partnership might be suitable for foreign companies wishing to venture into business in the Philippines.
- It is quite easy to attract investors who will agree to pool their financial resources with you since partnerships typically involve the utilization of the company’s collective assets.
- In the case of limited partnerships, there is no risk to lose your personal assets since you’re only liable up to the amount of your investment.
- You have no full control or autonomy over the business.
- General partners are liable for the business decisions and debts of other partners, putting one’s personal assets at risk.