Jane and Jarrod have been employed by two different firms of photographers. They decide they should get together and establish their own business, called JJ Photographers. Each has decided to contribute $20,000 in cash to buy equipment, and they will rent premises in the local shopping centre. Both will work full time in the business and share profits and losses equally. They are not sure whether they should set up as a partnership or as a private company and have come to you for advice.
REQUIRED:
Explain to Jane and Jarrod the advantages and disadvantages of a partnership versus a private company structure for their new venture.

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The Answer of Jane and Jarrod have been employed by two different firms of photographers. They decide they should get together and establish their own business, called JJ Photographers. Each has decided to contribute $20,000 in cash to buy equipment, and they will rent premises in the local shopping centre. Both will work full time in the business and share profits and losses equally. They are not sure whether they should set up as a partnership or as a private company and have come to you for advice.
REQUIRED:
Explain to Jane and Jarrod the advantages and disadvantages of a partnership versus a private company structure for their new venture.

Jane and Jarrod Have Been Employed by Two Different Firms