From the perspective of a single owner or existing partnership there are advantages and a disadvantage to forming a commune.
- Allows owners to monetize their stake in the company, as new partner funds generally go to existing partners.
- Allows owners to sell shares for higher price than market, because communal transfers are made at the democratically determined median offer price, instead of the lowest offer price set in market transactions.
- Partnership transactions can be effected electronically and without an external exchange's transaction fees.
- Through reinvestment formula's adjustments to sales price, new partnership funds can fund the organization as well.
- Equality of ownership creates perfect alignment of interests.
- Intrinsic fairness of equality enhances sustainable motivation of partners.
- An organization with many financially invested partners is more investable because internal controls and detection capacity designed to protect partner interests also protects external lender interests.
- The leadership, vision, and opinions of original founders or founding partners is diluted by a wider equality of voices.
- A false disadvantage is that slower decision making is worse than dictatorial control.