You are essentially doing the same thing with a bank, but with less risky. There are no debtor's prisons. If you default, you can claim bankruptcy and walk away

You are essentially doing the same thing with a bank, but with less risky. There are no debtor's prisons. If you default, you can claim bankruptcy and walk away. There are other risks inherit to have a business partner. The biggest one being the risk that your business partner engages in illegal activity under your shared entity. Suddenly you are liable as well. The tamer issues revolve around not wanting to do business with someone anymore... And it can end as bad or worse than a divorce.