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The law regarding Partnerships is different in different States, Countries etc but the following is generally true.
Disadvantages
1. Every partner is liable for any debts the partnership has and any partner can incur debts for the partnership. The debt is not split equally between the partners, every partner is responsible for the debt being repaid.
2. When a partner wants to leave the partnership or dies, they have to be paid out. As a lot of the value is usually in plant and equipment, this usually means taking on a lot more debt. If nobody will lend you the money, the other options are downsizing the business or liquidating.
Advantages
1. You have a formal agreement with the people you are working with as how your business will operate. This should include who works how many hours, does what sort of work, what the profit sharing arrangements are, what happens when a partner leaves the partnership etc.
2. It is usually easier to get loans, lines of credit etc because all the partners are guaranteeing the debt.
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