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The main advantage that applies to ILM Trading is that a partnership ensures that there is greater scope for raising finance. Another advantage that arises out of a partnership as regards finance is that if the business was to become insolvent then the partners would become jointly liable for any debts incurred. Debts would not fall on just one individual, as they would in the case of a sole trader. When setting up a partnership there is no onus to publish the results of the organisation in contrast to companies which are required by law to publish their results.
In order for a partnership to take place in the eyes of the law, a document known as the partnership agreement must be drafted...
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