Eventually, most sole proprietorships recognize that by combining talent with other individuals in the same industry, their businesses can grow. Many accounting firms such as Maxwell Locke & Ritter LLP start out as sole proprietorships. In 1991, Earl Maxwell, Tom Locke, and Mark Ritter established the Maxwell Locke & Ritter partnership in an effort to combine talent, knowledge, and clients. The founding partners believe that their practice should focus on three things: their clients, their people, and their community.
Considering the different types of partnerships, why do you think Maxwell Locke and Ritter decided to form an LLP (limited liability partnership)? Discuss the advantages and disadvantages of partnerships in general.