IndexA partnership will have the following strengthsLower legal liabilitiesSimplicity and flexibilityUnlimited liabilityInstabilityStatusLiability is limitedLower levels of taxationSurvivalAccounting and reportingLegal obligationsHigh cost of formationChoosing the type of ownership of a business is a very important aspect of starting a business as it determines various legal and operational issues affecting a business. There are many types of business ownership that can be established when starting a restaurant business. The most suitable form of ownership for this purpose will be a partnership or a limited liability company. Both have their strengths and weaknesses, which I have outlined below. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay A partnership is when business ownership is shared between two or more individuals. A partnership will have the following strengths The income earned by the business will go directly to the partners. Members will be able to divide all profits among themselves as they will not have to pay taxes on behalf of the company. This avoids the problem of double taxation, where a business will be taxed and then the owners will be taxed again on the profits they receive. Fewer Legal Responsibilities There aren't many legal requirements to meet when starting a partnership. It is not even mandatory to have a partnership agreement, although it is better to have one. No special governance structure is needed. The partners themselves can decide how they want to govern the company. They can choose a centralized structure or a fully decentralized structure that allows all partners to actively participate in management. Simplicity and flexibility Less expensive to train and requires less formalities and paperwork. Business decisions can be made through discussions between the partners themselves. The weak points of a partnership can be indicated as follows. Unlimited Liability Partners are personally liable for business debts and liabilities. If the business fails, the partners will have to somehow pay off any remaining debts and liabilities using their personal property. Each partner is also liable for debts incurred from the actions of another partner. Instability There may be instances where a partnership may not be so stable as a partner's own actions can lead to the dissolution of the partnership. The death, bankruptcy or resignation of a partner can lead to the sudden dissolution of the company. When it comes to a limited liability company, the advantages you can get are as follows. Status The term “limited” gives the company more esteem and makes it seem larger, which will help attract more investors and customers. Furthermore, suppliers and other companies are more willing to deal with a limited liability company due to the professional image. Liability is limited In a limited liability company, shareholders cannot be held personally liable for the company's debts and liabilities. Each shareholder's financial liability for the company's debts is limited to the value of his or her initial investment. Lower Levels of Taxation Limited liability companies are subject to lower levels of taxation than the personal tax rates imposed on partnerships. Survival Since the limited liability company is considered a separate legal entity, it will survive beyond the existence of its original owner. However, a limited liability company has the following disadvantages. Accounting e..