sole proprietorship agreement
both are easy to form and offer few legal obligations. the profits, losses and taxes of both organizations are directly linked to the business's owners. the only obligations are local registrations and licenses. in addition, a partnership must register as a new business with the local government. that said most partnerships have a partnership agreement, which is developed by the partners and outlines the businesses practices and responsibilities. both sole proprietorships and partnerships are directly linked to the personal finances of their owners. all operations, capital tax obligations and liabilities are the responsibility of the owners. in addition, a partner may become liable for the actions and debt of other partners.