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Like being a sole trader you trade personally
and partnership does have similar tax advantages
and disadvantages. There is slightly more
paperwork involved; the preparation of
partnership accounts is more complex than
accounts for a sole trader. There is however one
considerable disadvantage that is unique to
partnership.
Under the principle of joint and several
liability you are liable for the actions and
debts of your partners and vice versa. For
instance if a partner was to perform some work
for a client negligently then the client would
not sue the partner but the partnership as a
whole - including you. Because of this
disadvantage partnerships are rare outside of
the traditional professions such as the law,
accountancy, architecture and engineering.
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