Partnership Firm Vs. Private Limited Company:

[Mika]

Partnership Firm Vs. Private Limited Company, in my opinion there is nothing better or worse, a company is judged by its performance (planning, organizing and controlling) and the company's ability to make a profit. The main difference is in the recording of capital on the balance sheet, if the partnership records the amount of capital and the owner of capital, but in a company that records the number of shares and the initial capital. Partnership can also turn into a public company by applying for a license at the government trading office, of course after their financial reports are audited by a public accountant and by the Government Financial Supervisory Agency.

I agree with your point of view. There is nothing such as one of these is better. Both have pros and cons. While a partnership firm is limited with a couple of partners and everything is decided by partners, a private limited is a company with shareholders who may or may not have their presence in the board of directors. In fact it is not even possible to have all share holders on the board of directors.

 

[Adesuwa]

Both is not bad but only if one's partner is a trustworthy person.
But I would prefer private company business owned by you, in this case you will be free with your business and you will manage your business with peace.
No one is going to share the money that you earn In a month or year with you,you are the owner of the money you just need to pay your workers salary and the rest. Belongs to you.

 

[Shahzaib37]

Partnership and a private limited company, both are small business organizations with a small capital and small working staff. I am not an expert in business and finance but based on my understanding and reading, the only difference I see between these two is while a partnership firm has limitations in terms of growing big whereas a private limited company can grow really big, sometimes even grow into the size of a public limited company.

A partnership firm is when you join with another person (can be more than one, and there is no limitation on how many people can participate, but if there are over a dozen it is generally recommended that you go for a public limited business model), raise capital, write a business contract, and register your firm in the trade and commerce department in the place of your operation. A Private limited company needs to be registered in the company registrar's office and need a document signed by shared holders.

Partnership firm is good for starting a business in partnership a man learn more then private limited company.
First we start as partnership a time comes when we need to develop a private limited company.

 

[Chizfab]

The both are good but l must choose, I will go with private limited company because I will love to grow and expand without having to get other people's opinion or agreement. Partnership is good when you either have the idea with no capital or capital with no business idea to invest on. If l have the both, l will opt for private limited company.

 

[Ralphjoe]

Private limited liability company is more preferable to me than partnership business because private limited liability company will be more profitable than partnership business, it also has independence attached to it since its owned by an individual.

 

[Neta Sam(Samuel Odunlade)]

Partnership and private business, either of the two is good and it comes with its own advantage and disadvantage, private is monitored by an individual, while partnership involved more than two people investing together, the difference in interest may be the challenge but it is also a good way of doing business, mean while the risk in private will be solely on the owner but for partnership all the investors will bare the risk

 

[Nicklas22]

I will go for partnership because more than one idea will be available for the business and much money with be available from the members and when there problem with the business everyone has to come together and solve it

 

[Richard92]

when it comes to business I prefer a private limited liability company than a partnership business this is because in a private business I have the ability to make a fast and quick decisions than a public business public business limits your decisions because you have to seek some permission from your partner and get his or her own consent before you can be able to make decisions.

 

[Segat]

Both are good with almost the same similarities in their operations just that partnership cannot be owned by less two persons while the other can be. Decision making in partnership maybe slow because all parties concern must be part but not so in private.

 

[shakky2]

i will prefer to go with the partnership firm since it helps in the building of the company's capital as many people can come together to create the capital with different business ideas and contribution from various thinking minds

 

[Milz]

I would prefer partnership because as the saying, two head are better than one. When two different individuals come together to put in resources and ideas, I think that partnership is unstoppable except one is devious.

 

[Ibrahim]

As for me I prefer private limited company business because it's going to be my own business and I will handle it the way I want and think of next progress but as for partnership, partnership is two man business or more and it's very risky also not save moreover the percentage it's self not safe

 

[Succjay]

Wow such an amazing and brilliant write up. I would say the both are good as the both have advantages and also has disadvantages. Depending on the size of business, it's not really easy for a large scale business to be handled by a single hand.

 

[Judee201]

The main advantage of a private company limited by shares is the limited liability of its shareholders. During the recent recession, many businesses experienced financial constraints which affected their performance and solvency. One advantage of private limited companies during the period is that the financial liability of the shareholders of such companies was limited to the number of shares they hold in the company. Therefore, if a private limited company is in financial trouble and had to wind up, shareholders would not risk losing their personal assets.

 

[ahmedo24]

I am more conversant with partnership business which to a greater extent is very interesting and profitable , learning more about limited liability company from you guys opinions is also good at least one can invest in such company as a share holder.

 

[Ezzyoj]

Wow, wonderful article. Partnership business is never a bad idea as it has a lot of benefits than limited company, the only issues with partnership business is people who are involved being trust worthy and also being to take the business as their own. Choose your partner rightly to avoid problems.

 

[Atif3786]

There are two primary advantages to a limited company, the tax treatment and protection from personal liability. The limited business structure is not recognized at the federal level; it is what is known as a pass-through entity. This means the IRS does not formally recognize the entity as separately taxable, and the taxes owed "pass through" to the individual or individuals operating the business.

 

[Ola@ariyo]

Partnership is good but the profit in the partnership business is not as much as that of private business. The private business have more income but mind you the running of the business is done alone and the if the business losses it will affect the owner alone not as the partnership that the profit and lost will be shared between the numbers of person's in the partnership.

 

[Prettyjanie]

To determine between partnership and private which is better, will depend on the kind of business you intend to pursue. While in Summerville decisions is better to have a partnership because you both can reminds and see how you can make the company grow. Private firm you are alone, you get to determine alone, and of course you and enjoy the profit alone.

 

[Ausaf Ali]

A partnership's firm and privaye limited firms are to much differ in a partnership's firm have a 2 to 7 member minimin and private limited firm have 48 members and share holder.
Private limited have a own asstss when the business commentators are on their money. The numbers of the private sectors have a lot of choice.