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Partnership vs Proprietorship

CA pradeep (OFFICER- FINANCE) (84 Points)

27 May 2011

can any one tell me the benefits of doing business on the name of partnership firm instead of proprietorship..

there is no fund shortage and one want to save tax... which one is good.. and how to do it.. or let me put it in different way..

why partnership is to be selected instead of propretorship... why C.A firms go for Partnership... reasons???

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8 Replies

Dhawal Mohnot (Practicing) (449 Points)
Replied 27 May 2011

you are asking about practising CA in a propreitorship or partnership????? or any general business!!!!

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Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 27 May 2011

Sole proprietors have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are at risk.
May be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans.
May have a hard time attracting high-caliber employees, or those that are motivated by the opportunity to own a part of the business.

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Vijay (Adamo Studio) (2112 Points)
Replied 27 May 2011

The core reason is the limit of No. of audits so a employee becomes a partner on paper.

And second reason Bank audits and Govt. audits are generally not alloted to proprietors.

Dhawal Mohnot (Practicing) (449 Points)
Replied 27 May 2011

thats not right,

bank branch audit is allotted only to propreitors and not to partners.

Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 27 May 2011

Originally posted by : Dhawal Mohnot
	thats not right, bank branch audit is allotted only to propreitors and not to partners.

Who says that????????????

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Dhawal Mohnot (Practicing) (449 Points)
Replied 27 May 2011

sorry.. i would rephrase my sentence.

As a general practice bank branch audits are given to proprietor audit concerns. No one says this. this what is being followed in the city where i stay.